During the first days of December 2021, the MATIC token occupied the 15th position of the top cryptocurrencies by market capitalization. But it was not always this way. After this digital asset hit the market in April 2019, it did not show a particularly good performance for the first two years. However, in the second quarter of 2021, MATIC took off to become one of the most valuable cryptocurrencies that year.
Despite some price corrections along the way, the MATIC bullish run of 2021 did not seem to slow down. But it did. In the first half of 2022, the MATIC price had a sharp downfall, going from $2.53 at the beginning of the year to $0.38 on June 16. In the last months, the MATIC price has exhibited a lot of volatility. Will this downtrend continue through the next few years? Should you invest in this digital asset? Let’s take a look at the MATIC price prediction prepared by our team of cryptocurrency experts. With this information, you will be able to make better investment decisions concerning this token.
MATIC Fundamental Analysis
Polygon, formerly known as Matic Network, is a Layer 2 scaling solution for the Ethereum platform. It combines a protocol and the Polygon SDK framework, which allows for building multiple types of applications. Thereby, developers can create blockchain networks that are fully compatible with Ethereum. In other words, Polygon transforms Ethereum into an Internet of Blockchains.
Polygon is not the only multi-chain system in the crypto sphere. Polkadot, Cosmos, and Avalanche also support multiple blockchains. However, the Ethereum platform is well-reputed because of its security, openness, and vibrant ecosystem. So, it is not surprising that some big names like Binance and Coinbase back the Polygon project.
Ultimately, Polygon seeks to foster the mass adoption of cryptocurrencies by improving scalability on many blockchains. For instance, Polygon helps resolve several limitations of the Ethereum platform. It enables a system of blockchains connected to the Ethereum chain. Thereby, it allows for the processing of over 65,000 transactions per second. Block confirmation would reduce to a mere 2 seconds!
Polygon native token, MATIC, is an ERC-20 token that runs on the Ethereum blockchain. MATIC is used to pay for services on Polygon. It is also the settlement currency between users operating within the Polygon ecosystem. The transaction fees on Polygon side-chains are also paid with MATIC tokens.
MATIC Technical Analysis
Polygon was launched in 2017 and moved to its own network in 2019. The Matic Network conducted an initial coin offering (ICO) on the Binance Launchpad platform on April 24, 2019. The ICO was a lottery instead of a direct sale of tokens. Out of a total supply of 10 billion MATIC tokens, 19% were made available for the ICO. Each MATIC token had a value of $0.00263 at that moment.
Following the ICO, the MATIC token gained value quickly. By May 19, 2019, it had reached a value of $0.02934 (as per CoinMarketCap). However, for nearly two years, MATIC remained at that price level. It never dropped below the $0.0l mark, but it did not show any significant price hike either.
The first month of 2021 was a turning point for MATIC. The price of this token went from $0.01904 on January 1, to $0.04088 on January 31. On April 14, the MATIC price reached an all-time high at $0.4427. A clear upward trend ensued, reaching $2.68 on May 18. But the price quickly dropped to $1.0867 on May 22. By July 19, the MATIC price bottomed at $0.6901. A new bullish run took the price up to $2.1285 on October 27, 2021. The MATIC price set its all-time high on December 27 at $2.92.
During the first months of 2022, the MATIC price remained above $1. However, a sharp drop happened in May, taking the price to as low as $0.382 on June 16. Although the price bounced back, it has been exhibiting a lot of volatility. As of January 13, 2023, the MATIC price was around $0.91. Despite its depreciation, MATIC is the 10th most valuable cryptocurrency, according to CoinMarketCap.
MATIC Price Prediction 2024
Several cryptocurrency experts believe that the price of MATIC is interconnected to that of Ethereum. Based on this assumption, MATIC could set a new all-time high in 2023 at $5.008. After such a hike, the MATIC price could drop to $2.915. Eventually, MATIC would close 2023 at $3.687.
Others are less optimistic. TradingBeasts, for example, predicts a maximum MATIC price of $2.29623 for 2024. These analysts believe the MATIC token would close 2024 at $1.79034. DigitalCoinPrice predicts a MATIC price of $2.93 by the end of 2024. On the other side of the spectrum, some over-optimistic predictions put the maximum MATIC price for 2024 at $8. Accordingly, MATIC would close the year at $7.5. However, our analysis indicates that such high values are unlikely in 2024.
MATIC Price Prediction 2025
In a few years, Polygon will likely consolidate itself as an effective solution to the scalability of Ethereum. Although there are several competing projects, Polygon has a viable roadmap to deliver a solution first. In such a case, the MATIC price would not be lower than $7.511 in 2025. It could even reach a maximum value of $10.941.
The analysts at DigitalCoin predict an average MATIC price of $7.4730759 for 2025. This prediction is in line with our analysis. For its side, DigitalCoinPrice predicts a MATIC price of $5.25 by the end of 2025. Other analysts are more optimistic and place the maximum MATIC price for 2025 at $35. However, based on our analysis, such a prediction seems unrealistic.
MATIC Price Prediction 2026
In 2026, MATIC will still be among the top ten cryptocurrencies by market capitalization. By the end of 2026, this token would be trading at $10.667. More optimistic analysts place the MATIC price at $12.241 by the end of 2026.
FAQ
What Is Polygon (MATIC)?
Polygon is a Layer 2 scaling solution for the Ethereum platform. MATIC is the native token of Polygon. MATIC is used to pay for services and transaction fees.
How to Buy the Polygon (MATIC) Coin?
You can use LetsExchange.io to swap some of your crypto holdings for MATIC tokens. You can swap over 4,000 cryptocurrencies at very competitive rates. Our platform also supports several fiat currencies.
Is Polygon (MATIC) a Good Investment in 2024?
If you are looking for a digital asset to diversify your investment portfolio in 2024, MATIC is a good option. The Polygon project has bright prospects. Such a promising future represents a progressive appreciation of the MATIC token in the coming years.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.