The crypto market is now flooded with a wide range of networks that are all competing to offer faster speeds, top-notch user experience and lower costs. The Polygon network is among the leading ones in the market currently, and it offers access to a wide range of unique and superior features.
The price of Polygon currently sits at around $1.29, making it one of the lowest priced cryptocurrencies ranking in the top 30. However, this low value is not a reflection of the future prices because the price of the cryptocurrency could skyrocket soon due to various reasons.
As mentioned, the Polygon network aims at solving some of the most prominent issues that are being faced by other blockchain networks. Some of the solutions that this network aims to solve are speed and cost.
One of the main challenges faced by the Ethereum network is slow speeds. With the network being unable to process transactions as fast as developers would want, it has posed a major challenge especially given the rapid growth of decentralized finance (DeFi). This places Polygon at a unique position where it can become a major DeFi hub, an effect that will not only boost network growth but also aid in MATIC’s price action.
When DeFi projects are launched on a network, the prices of the underlying token, which is MATIC in this case, increase because demand will be high. In addition, if the network gains adoption from DeFi developers, it will create the buzz surrounding the token, in which case, we could see MATIC heading towards new highs.
On the other hand, Polygon is still facing competition from other networks such as Solana and Ethereum, which is currently implementing proposals that will transition it to a layer two network. Despite these hurdles that the Polygon network has to overcome, it is still integrating upgrades that are aimed at making the network even more successful when it comes to DeFi adoption.
Historical Price Performance
The MATIC cryptocurrency is one of the newest ones in the market. This network was launched in 2017, and in only four years, it has grown to become among the top 30 networks and the most popular one in the market. On the other hand, the MATIC coin was launched one and half years after the Polygon network was launched, and at the time it was made public, it sold for around $0.00263. By December 2019, the price of the token has reached around $0.04168.
At the beginning of 2021, MATIC started at a low price of $0.01781. However, following the bullish gains that this coin was able to achieve during this period, it skyrocketed in price and reached incredible highs. By the end of April, MATIC had reached highs of $0.792, representing an over 2000% gain in value since the beginning of the year.
MATIC reached an all-time high of $2.62 on May 18, before a price correction happened shortly after. Despite the strong bearish sentiment that happened around this period, MATIC still maintained its value above the $1 mark, and this shows that the coin has buyer support.
The historical performance of a cryptocurrency is one of the main things that is used to assess whether an asset has the promise of gaining in value. The performance of MATIC since 2019 is promising, which shows that the coin’s future gains are still promising. The fact that MATIC has gained by over 40,000% since its all-time low shows that the demand and buyer support is strong for the coin, and we could see similar highs being garnered over the next months or years.
Market Support is Currently Strong
Assessing the current market support is also important especially for those who want to enjoy short-term gains. Currently, the market support is high, given that Bitcoin is on upward price movement, with its price sitting at around $54K. The movement in the broader crypto market usually influences the performance of different coins, hence MATIC could also benefit from this in the short term.
On the other hand, the market performance during this last quarter of 2021 looks promising, given that many analysts have speculated that major bullish gains are going to come. In this case, we could see the token creating new highs if these speculations pass. When the crypto market rallied in April and May, MATIC headed towards new highs, and if there is another strong bullish momentum, we could see a repeat of the same price action.
Some analysts have expected that Bitcoin will reach $100K by the end of the year, and if this happens, one can also expect the price of MATIC to rise by a similar threshold or even more. Over the past week, the price of MATIC has increased by around 17% because of a bullish gain during that week. This shows that the market support is a critical factor that could add to the gains that Polygon could make in the coming weeks.
Knowing whether the price of MATIC will rise or drop in the near future can be tricky, especially when one assesses the price volatility that has been witnessed lately. After a bullish gain in August, MATIC’s prices have dropped by around 20%, but it seems as if the coin could recover these losses because of the significant gains it has made over the past week.
If MATIC maintained the price action it started with at the beginning of the year, its price could be beyond the $100 level by now. However, dipping to $1 was a price correction that was inevitable, because of the major bullish gains that were maintained during that period.
On the other hand, market analysts have shown promise that MATIC’s price is going to increase at least in the coming years. Most of these projections do not show any major price gains past $3, but the market is still unpredictable, hence extreme gains are a possibility.
Despite the analysis given by different experts and analysts, it is still essential for a trader to do their own analysis and be cautious before making any major investments. In as much as the prices are expected to soar, there is also a chance that they could dip. This volatility makes it hard for even the best analysts to give an accurate prediction about prices.
To learn more visit our Investing in Polygon guide.