MATIC price prediction: Will Polygon grow?

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MATIC has seen a price rally, but can it hold on to its recent gains? What are the latest MATIC price predictions?

White and black MATIC crypto coin illustration                                 
The Polygon network was designed to improve upon existing blockchain technologies – Photo: Shutterstock
                                

In this forecast

The Polygon (MATIC) cryptocurrency was one of the biggest success stories of 2021, hitting an all-time high of $2.89 on 26 December. But what has happened to this coin, where did it come from, and where is the MATIC coin price going in 2022? 

First, let’s explain what Polygon is. It was set up in 2017 and was called Matic Network until February 2021. You might still hear the term Matic Network from time to time, but it is the same thing as Polygon.

Polygon is a framework for creating and building interconnected blockchain networks. This is particularly useful when it comes to setting up smart contracts, which are agreements between two parties that are automatically processed by the blockchain once certain demands or conditions are met.

The most common platform for using smart contracts is Ethereum. However, Ethereum’s problem is that there was no mass adoption of decentralised apps – or dApps – using the system. Some dApps did become popular, but that created another problem. Lots of people tried to use them but that meant high load times, which meant the Ethereum network slowed down considerably.

This in turn meant that people stopped using the dApps, which resulted in their never quite achieving the mass adoption they could or should have had.

Matic problem solving chart
Matic Network aims to solve some of the problems with dApp usage – Credit: Currency.com

With any problem, there is always a potential solution. In the case of Ethereum slowing down and delaying transactions due to a larger number of people using the dApps than intended, some developers sped things up by decentralising their systems. This was good in one way, because it meant the process got quicker and payments were speedier, but there were some downsides.

Firstly, it was less secure. Secondly, the systems used their own blockchains, which did not necessarily take into account the changes that Ethereum had put into place. Thirdly, and perhaps most notably, they ignored the substantial developer community that was linked to the likes of Ethereum.

From the Matic whitepaper

In order to solve the problems presented by modern blockchain technology, the whitepaper outlined their solution: “Matic Network strives to solve the scalability and usability issues, while not compromising on decentralisation and leveraging the existing developer community and ecosystem. It is an off/side chain scaling solution for existing platforms to provide scalability and superior user experience to dApps/user functionalities.”

It goes on to say: “The Matic development team has chosen Ethereum as the first platform to showcase its scalability and already has a working implementation for Ethereum on Kovan Testnet. It is expected to allow near-instant transfers, exchange and conversion of digital assets (eg, crypto tokens) and cryptocurrencies in the future.”

Matic Network launched

Matic Network, launched in October 2017, was designed to get around these issues and create a ‘best of both worlds’ solution. Matic used a technology called Plasma, which processed transactions off-chain before moving them onto the Ethereum main chain to finalise them.

This meant it could move quickly, without being slowed down by a high dApp user and developer base, but it could use dApps and the general Ethereum technological ecosystem to gain a wider market. It called itself a level-2 technology, meaning it was not trying to change the basic blockchain layer, but people could work outside it.

This meant that it was able to make things simpler, particularly interactions, while maintaining security and increasing accessibility. At least, that was the theory.

Chart showing how Matic Network works
How Matic Network works – Credit: Currency.com

In 2021, things changed a bit when Polygon was set up. It was basically the same as Matic, but while Matic was about moving things down to scale, Polygon was designed to set up blockchains that could operate with each other. The idea was to allow people to launch blockchain networks that were tailored to their needs. These could be customised with a range of modules, which would let developers set up sovereign blockchains with more specific functionality.

The system has its own cryptocurrency and, since Polygon is the de facto successor or upgrade to Matic, it takes its name: MATIC. 

That is Matic Network and Polygon explained, but what about its cryptocurrency? What is happening there, and what is the latest MATIC price prediction

A notable rise

The MATIC cryptocurrency is comparatively new. The network launched in 2017, and its coin went public around 18 months later, in April 2019. It was initially sold at $0.00263 a token, and for a while it hovered around that price. While it went up slightly to $0.04168 in December 2019, it went down again and started 2021 at $0.01781.

When Polygon launched, its value skyrocketed. By 13 March 2021 it was $0.4251, an increase of more than 2,286% in just over 10 weeks. While the market then corrected itself a little, dropping to $0.3019 on 25 March, its popularity could not be contained and by the end of April 2021 it had reached $0.792, up a further 86% from where it had been in the middle of March.

Dramatic fluctuations

The first half of May 2021 saw some pretty dramatic fluctuations. The currency broke the dollar barrier late on Sunday 9 May – not too bad for something that was worth less than two cents at the start of the year – before going down to $0.8158 in the early hours of 11 May. However, it then bounced back to $1.0302 late that night, and broke the $2 barrier on 18 May.

In other words, the MATIC coin price had gone up by around 9,320% since the end of 2020. Then it dipped to $1.10 on 24 May and slipped again to $0.69 on 21 July 2021.

The MATIC coin price then steadily crept back up. Reports of notable venture capital investors, including Sequoia Capital India, investing between $50m and $150m in Polygon helped the coin in its rally. On 9 December, Polygon announced a $400m deal with pioneering ZK (zero-knowledge) start-up Mir, along with a demo of the new Ethereum scaling solutions.

Additionally, increased interest as a result of Polygon’s ‘ZK day’ led to a media frenzy online. Ecosystem expansion, combined with rising institutional support and an increase in network usage led to a price surge and, on 26 December 2021, the coin reached a new all-time high of $2.92.

By 8 February 2022, Polygon had successfully raised $450m from investors including Sequoia Capital India, Galaxy and SoftBank to support its Web3 plans. Additionally, on 15 February, Polygon (MATIC) launched its long-awaited January 2022 EIP-1559 upgrade, which initiated the burning of tokens, potentially making them more valuable. However, the token-burning and investment news had yet to take full effect in a long-running bear market. At the end of February, the coin closed at $1.61. 

In March, Polygon suffered technical issues and had not produced a new block for over 11 hours. Developers attributed the issue to an upgrade on the network, contributing to lows of $1.34 on 14 March 2022. On 22 April 2022, Polygon introduced the new Supernets network, a blockchain protocol built to support Web3 technology, as well as pledging $100 million to early Supernets users.

A recent announcement from Polygon confirmed their commitment to greener technology:

However, following the market-wide downturns that plagued the crypto industry towards the end of the second quarter of 2022, the token met lows of $0.3228 on 18 June. 

A steep uptrend can be seen from that price point, and the token is currently trading at $0.9185. The network recently announced the launch of zkEVM, an EVM-compatible layer 2 scaling solution.

Polygon is maintaining a good position despite stiff competition and is currently the 12th-largest crypto by market capitalisation.

What now for the future of the MATIC coin price? What is the best prognosis for a MATIC network price prediction? And looking at the rest of the year, what does this mean for a Polygon (MATIC) price prediction in 2022? 

MATIC price predictions

Making a Polygon price prediction can be tricky, especially when we consider how much it has gone up in the last few months. However, most analysts seem to think it will rise, but not by that much, and should remain stable.

An analysis by FxStreet states: “MATIC price recovery has been uncontested compared to other altcoins. After bouncing 110% between June 18 and June 24, Polygon met a resistance barrier at $0.62. After a brief consolidation, however, this blockade was overcome.”

“While MATIC price shows a massively bullish outlook, investors should be aware that trends exhaust. If holders start to book profits, a retracement seems plausible. The bullish thesis will face invalidation if this pullback produces a daily candlestick close below $0.68.”

A MATIC coin price prediction for 2022 from DigitalCoinPrice suggests the coin could reach $1.30 in August, representing an upswing of over 40%. The site suggests an average price of $1.38 in 2023 and 2024. The site provides a MATIC coin price prediction for 2025 of $1.72, climbing to $4.25 in 2030.

WalletInvestor believes MATIC is a “bad long-term (one-year) investment”, suggesting a value of $0.07 in 12 months’ time. 

A bullish long-term forecast for a MATIC coin price prediction in 2030 can be found at PricePrediction.net: The site believes the coin could be worth an average of $13.36 for the year.

The MATIC price prediction looks generally positive. However, we shall have to see how the market continues to behave.

FAQs

Matic Network was the precursor to Polygon, a system that allows people to conduct business off the main Ethereum blockchain before moving onto it. It created the MATIC coin as a token of use, which has now developed a life of its own.

Matic Network changed its name to Polygon earlier last year, but the native coin is still called MATIC.

MATIC has certainly delivered some very impressive returns to investors so far, but as to whether it will continue to go up, that is anyone’s guess. WalletInvestor refers to the coin as “bad long-term (one-year) investment”. 

As always, you should be cautious, do your own research and do not invest more than you can afford in the notoriously volatile crypto market. Remember that a MATIC price prediction is just that: A prediction.

PricePrediction.net believes the coin could be worth between $1.84 and $2.65 in 2024 and 2025. 

WalletInvestor believes the token will continue on a steep descent, and DigitalCoinPrice doesn't believe the token will reach anywhere near its previous all-time highs within the decade.

Do remember, however, that forecasts can change rapidly. They are based on historical data and algorithms that do not take into account future market conditions.

MATIC is available on most crypto exchanges. Take a look and see which one has the best deal for you.

Remember to only invest what you can afford to lose, and bear in mind that prices can go down as well as up.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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