The sudden rise in Defi (Decentralized Finance) adoption among investors and crypto traders has led many to seek alternative solutions to the ever-growing Ethereum(ETH) transaction fees.
For an awesome user experience on Defi platforms, Polygon came up with a solution that allows retail and institutional traders. Like, to interface with Defi applications at an affordable transaction fee without losing their shirts on the Ethereum mainnet.
The team took it upon themselves to fix the ever-increasing Ethereum ETH gas prices. Making Ethereum’s Layer-2 scaling solution, with the MATIC token as one of the fastest-growing crypto assets in 2021. Furthermore, the Polygon network has grown to attract the attention of institutional investors following MATICs swift price rise and gains up to 15,184% in 2021, making new crypto millionaires.
However, the recent decline in the general crypto market cap begs questions from many old and new investors in the MATIC token. Along with an interest in knowing the likely price zones to anticipate a slowing price decline and possibly the Matic Price Predictions for the next five years.
If you fall under either of the category mentioned, then look no further as we’ll give you insights and price predictions from our analysts here at CoinGape as well as other renowned crypto analytics firms in the industry.
Before we go any further, let’s start by touching a bit on how it all started.
In a bid to take on issues surrounding blockchain scaling and ease of use, Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun co-founded Polygon, which was launched as MATIC Network in 2017.
It is no news that most first-generation blockchains are plagued with high transaction fees and latency that continually stand in the way of mainstream adoption, including user experience, and efficiency. Enter, Layer-2 scaling Solutions (or external networks), with Plasma as the then MATIC’s value proposition in 2017.
In February 2021, MATIC rebranded to Polygon expanding its product offering as a bridge that makes it possible for developers to build and connect to a wider range of Layer-2 infrastructures such as Optimistic Rollups, Plasma, zkRollups, Validium, and its earlier standalone MATIC PoS sidechain and other sidechains.
Polygon now plays a pivotal role by offering the necessary infrastructure of different scaling solutions that would collectively work towards scaling the Ethereum Network.However, MATIC remains the native token used for staking and settling transaction fees on the Polygon Network.
MATIC is valued at a market cap of $5.18 Billion at press time ranking as one of the top-performing coins that are less affected by the recent market-wide slump. Assets in the Polygon ecosystem are secured by a network of validators using a Proof of Stake consensus mechanism, where MATIC is staked, and received as a reward.
As a Layer-2 scaling solution, Polygon adopts a custom version of the Plasma framework developed on PoS checkpoints running on the Ethereum main chain, which makes it possible for sidechains on Polygon to achieve up to 65,536 transactions per block.
In the future, the Polygon Network looks to become a decentralized, interoperable layer-2 blockchain platform, by extending support beyond the Ethereum base chain into additional, uncharted base chains as suggested by the community and consensus.
Polygons’ idea of expanding its functionalities as a Swiss-army knife to tackle the scaling of traditional blockchains makes it a go-to project that investors are willing to participate in the network security through staking of MATIC while holding the asset for as long as 5years.
MATIC is the native token of the Polygon network with two use cases being fees and staking.The Polygon Network was launched in three funding rounds, with an initial supply of 10,000,000,000 MATIC tokens, starting with a seed round of $0.17M in April 2019, an early supporters round of $0.44M, and an Initial Exchange Offering IEO of $5.00M.
The table below shows the initial token distribution for MATIC.
|Binance Lauchpad Sale (IEO)||19%|
A security audit of the earlier MATIC Network plasma contract was conducted by Quantstamp, where five high severity, seven medium, and four low severity issues were discovered, which have been resolved by the MATIC Network.
The image above, courtesy of messari.io shows the Initial supply breakdown of the MATIC token where 36.3% was assigned for Premined Rewards & Airdrops, 22.8% for Investors, and 41.9% for Founders & projects.
Traders and investors saw a sudden surge in their MATIC holding. A second hidden bullish divergence on 01 November ’20 revealed rising investor confidence for the MATIC token. The regular bearish divergence on 01 December ’21 marked the start of the recent correction phase and signal for holders to lock in some of their gains.
However, if you’re like me and you look to hold the MATIC token for a long five years holding time, then you can look to start scaling up on your long position as the MATIC token can slip below the $0.621 hidden bearish Inside bar support to a minimum price of $0.183 at the end of the year.
We predict the maximum price for the MATIC token to be the $2.101 price mark as it already aligns with a bearish inside bar candlestick formation (an accumulation of sell orders), which the bulls will have to breach for us to see further highs in the coming year.
The MATIC price is entering oversold territory as the RSI-4 already dips below level-25 on the monthly time frame.
For a prolonged price decline in 2022, an exit of the oversold level would signal a build-up of bullish momentum by January ’23, where the MATIC price will leave the $0.255 minimum price and ascend to the $1.596 maximum price level as the Polygon network sees an increase in its adoption and other innovative ideas get initialized.
Not forgetting that the long-term goal of the Polygon network is to be an interoperable scaling solution for anything Layer-2 across multiple blockchains. Well, we believe that the ecosystem would have grown beyond its current state in the next five years as Ethereum would have also scaled up to Proof of Stake.
With that in mind, we project the MATIC price to hit its highest price of $69.46 by 2027, aligning with the 3.618 Fibonacci extensions and a minimum price of $4.208 (2.618 Fib-level).
Without a doubt, Polkadot is currently the number one competitor to the Polygon network as they both offer a scalable and interoperable blockchain solution. Although Polkadot seems to have a wider ecosystem being a network of many blockchains, the Polygon network is also seeing a rapid growth as it looks beyond only scaling the Ethereum network. Other notable competitors include Kusama, Cosmos, and Arbitrum.
Polkadot being the number one competitor of Polygon is a Layer-1 blockchain, which means that it does not leverage any other blockchain for its security. With its support of over a hundred different chains, Polkadot enables communication of different blockchains through connections. Polygon on the other hand leverages the decentralization and security of the Ethereum network hence why it’s called a Layer-2 scaling solution.
polygon also has ambitious plans to improve blockchain interoperability beyond Ethereum.
Our team here at CoinGape believes in a promising future for the MATIC token on the Polygon network.
|Years||Max high||Min low|
Now that you’ve seen our prediction, you may also be interested in knowing other expert analyst predictions of the MATIC token from 2022 to 2027. Let’s start with the DigitalCoinPrice analytics firm.
Analysts at DigitalCoinPrice hold a positive outlook on the MATIC token as depicted on the chart above. The chart overhead shows the MATIC price prediction that goes beyond 2031, with the price shy of the $4.00 round-number resistance. The table below highlights their predicted maximum and minimum values for the MATIC token going into the next 5years.
MATIC price forecast by Wallet Investor, the renowned crypto analytics firm shows a decline in market volatility. The crypto analytics firm predicts a +295.1% increase in revenue from a $100.00 investment in the MATIC token, considering a 5years holding time.
MATIC price prediction by expert analysts at CoinArbitrageBot is the most optimistic of all the crypto analytics firms as they project the price to surge up to $7.35419 in three years.
Analysts at LongForecast predict a prolonged bearish two years for the MATIC token with a predicted maximum price of $1.02.
Q: Where Can I get the best ASK price for MATIC?
Rising trends and popularity of the Polygon Network make MATIC a sought-after token on both centralized and decentralized exchanges. Binance, Coinbase, and FTX are centralized crypto exchanges that allow retail and institutions to buy the MATIC token. However, if you’re like me and you love Defi, then you can also buy the MATIC token on decentralized exchanges DEXs such as UNI SWAP and SUSHI SWAP DEXs.
Q: What Is MATIC Used For?
MATIC is used for paying fees and staking on the Polygon ecosystem.
Q: Will MATIC see a price Hike in the next 5 years?
Yes, MATIC will record a higher all-time high in the next five years.
Q: Is MATIC a profitable coin to invest in?
MATIC is not only a profitable crypto project to invest in but also may see a surge in volatility as Ethereum is likely to scale its network. Ethereum’s move to Proof of Stake may not be detrimental to the success of the MATIC token as the Polygon Network also look into being an interoperable network.
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