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? What about Matic price prediction? Can Matic Coin reach $100? This article will show you the answer.
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.
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.
How Matic Network works
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- Can Matic Coin reach $100?
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 $100m to early Supernets users.
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 – the token closed at $0.9618 on 18 July. The network announced the launch of zkEVM, an EVM-compatible layer 2 scaling solution, and the token briefly peaked above the dollar mark towards the end of July. However, more market turmoil ensued and, towards the end of August, the token dipped below $0.76 again.
As of 1 September and at the time of writing, the token is trading at $0.8333. 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 prediction
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 dropped roughly 28% between August 14 and August 20 as it slipped from a swing high of $1.048 to $0.758. This downswing created two equal lows at $0.758, bringing the total swing lows formed at the aforementioned level to three.”
“Instead of sweeping these lows first, MATIC price is consolidating in a tight range. Moreover, the altcoin looks ready to revert to the mean of the 28% crash at $0.906. Assuming this 9.7% bounce does occur, investors should exercise caution and not become a bull with this minor uptrend since a reversal seems logical at $0.906. The reason for this bearish outlook is that the macro view of the markets is bearish; therefore, this small move is unlikely to trigger a bullish development in MATIC price. Instead, market participants should prepare for an eventual sweep of $0.758 followed by a retest of the $0.673 and $0.598 support levels.”
A MATIC coin price prediction for 2022 from DigitalCoinPrice suggests the coin could reach $1.16 in December, representing an upswing of almost 40%. The site suggests an average price of $1.26 in 2023 and 2024. The site provides a MATIC coin price prediction for 2025 of $1.57, climbing to $3.87 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 $23.36 for the year.
The MATIC price prediction looks generally positive. However, we shall have to see how the market continues to behave.
Hope this article can help you get a better understanding about MATIC price prediction.
