As the Ethereum interoperability framework, Polygon is an extremely interesting network for investors. The price of Polygon’s MATIC token has fallen relatively sharply in the last 3 months during the crypto market correction. MATIC is therefore now relatively cheap to buy. Polygon price could evolve positively in 2022 and its price could rise to new heights. Can the price reach the $10 mark in the next few months?
What is Polygon Crypto?
Polygon is a scaling solution for the Ethereum network. The Ethereum blockchain was the first network to introduce smart contracts, making Ethereum a leader in decentralized applications to this day. However, Ethereum has struggled to keep transactions fast and efficient as the number of smart contracts has increased. This is how the Polygon network came about.
Polygon is a layer 2 solution in which a second level and numerous sidechains offload the Ethereum blockchain. The so-called “plasma chains” from Polygon are particularly important. These Ethereum sidechains offload the blockchain’s smart contracts. Developers of decentralized applications can outsource their dApps and smart contracts to the Polygon network if required. This solves Ethereum’s scaling problems.
What is the difference between Polygon and MATIC?
Polygon used to be called the MATIC network. At that time, MATIC focused primarily on increasing the scalability of the Ethereum blockchain. In February 2021, however, there was a re-branding to Polygon. With this, Polygon wants to become more than just a scaling solution for Ethereum.
After the re-branding, Polygon wants to pursue even more ambitious goals. The Ethereum network is to be transformed into a fully-fledged multi-chain ecosystem. The goal is to become “Ethereum’s Internet of Blockchains”. From now on, Polygon is the larger project. Only the network token is still called MATIC today.
What happened to Polygon (MATIC) Price over the last 12 months?
A year ago, the Polygon MATIC price was much lower than it is today. The MATIC price was 0.34 US dollars at the end of March 2021. However, there was already a strong increase in the first 3 months of 2021. On January 1, 2021, the price was still $0.01. From April 20th to May 18th, there was a massive 760% surge. The MATIC course went as high as $2.68.
In the months that followed, the Polygon (MATIC) course rose and fell again and again. Due to the strong correction in the crypto market in spring / summer 2021, MATIC fell to $0.69 on July 20, 2021. In October, the price climbed back above $2 and in December MATIC reached a new all-time high of $2.92 December.
In the new year, the Polygon (MATIC) course began to descend due to the generally weak crypto market. At the end of February, the rate was only $1.28. In the last few weeks, the price has risen again. However, unlike Bitcoin, for example, Polygon (MATIC) is still in the red.
What Could Drive Polygon Price Up in 2022?
As a scaling solution for Ethereum, the price of Polygon (MATIC) also depends heavily on what is happening at Ethereum. Ethereum 2.0 should finally be launched there in the next few weeks. This could mean massive price gains for both Ethereum and Polygon over the next few months. However, there are still several unanswered question marks.
Ethereum 2.0 could also mean that another scaling solution would become obsolete. On the other hand, Polygon is fighting with efforts to make Ethereum a multichain network and to offer a similar solution as Polkadot for the Ethereum blockchain.
Furthermore, data from the Polygon network shows that in January 2022 three times as many decentralized applications (dApps) were running as three months earlier. This shows that Polygon can grow regardless of Ethereum developments and a bullish development in the overall market.
Can Polygon price hit $10 in 2022?
A $10 level is an extremely bullish target for the Polygon (MATIC) price. Only a massive jump this year could achieve that goal. There is still a chance that the crypto market will experience another massive bull run, with cryptocurrencies doubling or tripling in price.
A very bullish market could see prices as high as $4-5 by the end of the year. The $10 seems extremely unlikely. Right now, the price is very likely grossly undervalued over the long term. Nevertheless, there are risks that Polygon (MATIC) will lose relevance in the future due to Ethereum’s lack of scaling problems.
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