Despite the significant setbacks experienced by cryptocurrency markets this year, many analysts remain upbeat about the fortunes of one – MATIC crypto.
MATIC crypto is the native token of the Polygon Network, which is a Layer-2 sidechain. Polygon’s network runs alongside the Ethereum blockchain and claims to provide cheaper and faster transactions.
Despite losses, many analysts agree that MATIC has fared better than many cryptocurrencies during the 2022 bear market. Partnerships with major brands like Coca-Cola and Disney certainly helped.
A round-up of expert views showed that many are optimistic about the future of MATIC, especially for 2023 and beyond.
If Polygon’s MATIC is predicted to have a bullish future, we need to understand more about the platform.
MATIC Crypto
Polygon was founded by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun in October 2017. It launched under the name MATIC Network.
The basic concept was to better enable blockchains to connect and scale, with its sights firmly on tackling the lack of efficiency and capacity on Ethereum. While the Ethereum Merge seeks to address these shortcomings, Polygon has had a significant period to establish its credentials and fans, which are likely to survive any Ethereum update.
The Polygon white paper reveals the creators focused on the criticism of high gas fees and a slow network levelled at Ethereum.
The solution was a protocol and framework to create and connect platforms compatible with the Ethereum blockchain. It works by categorizing scalable Ethereum solutions to support the multi-chain Ethereum ecosystem.
MATIC is the Ethereum token that powers the Polygon network.
It is an ERC-20 token, making it compatible with other Ethereum-based digital currencies. It is used to secure and control operations on the Polygon network, and pay transaction fees.
MATIC Crypto Price
The initial price of MATIC was $0.00263. On December 27, 2021, MATIC reached its all-time high of $2.92.
Like all cryptocurrencies, 2022 has proved challenging for Polygon. Its value consistently fell throughout the year’s first half, hitting $0.3244 on June 18. However, since then, the general trajectory has been upwards. By mid-September, the price stood at $0.8145.
This is still well below the ATH, but, as mentioned above, many analysts see MATIC’s performance as bullish in the current market and predict a brighter future.
Why Polygon?
Using the Polygon platform increases the flexibility and capacity of a blockchain project and ensures the interoperability, security, and structural benefits of the Ethereum blockchain.
In addition, Polygon uses a modified proof-of-stake consensus mechanism that enables a consensus to be achieved with every block.
Although Polygon is seen to enhance Ethereum, addressing speed and cost concerns while adding features like extra security, modularity, and sovereignty, it does have its critics. While higher speeds, greater efficiency, and lower transaction costs are welcome, the fact that it depends on the Ethereum blockchain has been highlighted. Its fate is intertwined with Ethereum. Surely ‘the merge’, Ethereum’s attempt to tackle speed and cost, will dent Polygon’s ambitions?
Looking at the analysts’ predictions for MATIC, perhaps not.
Arguably one of the standout features of Polygon is innovation. For example, it launched Polygon Studios, a subsidiary focused on blockchain gaming and non-fungible tokens (NFTs), last year.
In July 2022, Polygon was announced as one of the names selected for the Disney Accelerator Program – the only fully-fledged blockchain project included. In August, Coca-Cola partnered with Polygon Studios for an NFT collection.
Both impacted positively on the MATIC crypto value.
MATIC Crypto Investment
Ultimately, this brings us to whether you should buy MATIC.
My articles are not investment advice nor promotion of any cryptocurrency as an investment opportunity. Before spending any of your money, you must understand the risks and ensure you conduct thorough research.
Cryptocurrency is volatile, as we have seen this year, so any price predictions are just that, predictions. Ensure you are fully aware of the risks and never invest more money than you can afford to lose.
Your research should take in multiple sources and give you a clear understanding of the function of what you are investing in. You should consider whether it matches your investment strategy and if you identify with the use cases.
The choice of whether to buy MATIC crypto is entirely yours. My only advice is to do your own research, exhaustively and thoroughly.
