Polygon (MATIC) Cryptocurrency: Is It A Buy, Hold Or Sell Right Now?

Last Updated May 23rd 2022
4 Min Read

Layer-2 solutions like Polygon are gaining massive popularity recently. So would it be the right time to invest in MATIC?

Ethereum, the second-biggest cryptocurrency, was the first to develop smart contract capability in the blockchain sphere. But Ethereum’s high gas fees and less scalability made crypto enthusiasts look for other options like Polygon (MATIC), which is exploring multiple scalability options for its users. The crypto hails itself as the Ethereum scalability solutions aggregator. Polygon strives to address some of Ethereum’s major drawbacks like insufficient throughput, lack of community governance, and poor user experience with a new sidechain solution. 

MATIC cryptocurrency was one of the biggest success stories of 2021. It performed better than many cryptocurrencies in the crypto price slump last year. But where is MATIC coin price going in 2022? Is Polygon a buy, hold, or sell right now? Read on to find out. 

A Market-Beating Cryptocurrency — But For How Much Longer?

MATIC seems to be all set for a massive rally in 2022.

Polygon is a protocol that aims to create and connect Ethereum-compatible blockchain platforms. The primary motive behind the network is that developers should be able to choose the solution that works for them rather than being presented with a one-size-fits-all solution. Polygon strives to solve the issues of scalability and usability without compromising decentralization. Furthermore, it enhances interoperability between the Ethereum and compatible networks. 

Polygon's strong focus on scalability makes it very attractive for decentralized applications (dApps) that run on the Ethereum blockchain. It is also capable of processing more transactions per second than Ethereum at a fraction of the cost. The additional layer, called the sidechain, works parallel to the existing blockchain technology to enhance performance. Therefore, in theory, Polygon's utility goes beyond Ethereum as it can layer onto any blockchain to add speed and allows different platforms to work with each other.

2021 was indeed one of the best years for Polygon as the token showcased an impressive performance. With more network development and partnerships in the pipeline, experts predict that the token will continue its rally in 2022, making MATIC a good buy now. 

Don't Miss: 5 Reasons Why Polygon Could Double Your Money

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Road Ahead For Polygon

Polygon is developing multiple scaling solutions which could eventually boost its adoption rate in the coming years. 

One of the key growth drivers for MATIC token price is the addition of new protocols to the Polygon network. The network will also see a rapid rise in its on-chain activities. As more people start to realize the capability of Polygon blockchain, the price of MATIC may continue to rise in 2022 and beyond. 

The Release Of Zero-Knowledge Proofs For New Identity Service

The team behind Polygon believes that giving people more control of their digital identities is at the core of Web 3.0’s promise to empower users over networks. This is why Polygon’s upcoming suite of zero-knowledge protocols is an identity service. 

Polygon’s ID permits users to create new forms of reputation such as decentralized credit scores for financial primitives, social payments in DeFi, decentralized Sybil score, voting power, and many more.

Zero-knowledge-based protocols strengthen privacy by allowing blockchain networks to validate transactions without revealing any data other than time and date on the blockchain. The move helps users transact on Ethereum and protect their personal information in the best way possible. 

Polygon Raises $450M To Scale Ethereum 

Polygon has raised a $450m fund through a private sale of its native MATIC token earlier this year, with a funding round led by Sequoia Capital India and 30 other investors. It was intended to help scale Ethereum and pave the way for the mass adoption of Web3 applications. The funding will also allow Polygon to continue investing in cutting-edge zero-knowledge technology, boosting the network's adoption rate. 

Mark Cuban's Polygon Investment

Several investors, including billionaire-entrepreneur Mark Cuban, have recently turned their attention to Polygon. 

Cuban has stated, 

"Polygon is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development." 

He also added that he wants to integrate Polygon into his non-fungible token (NFT) gallery, Lazy.com. Crypto experts consider the billionaire’s investment in Polygon to indicate the company's long-term credentials. 

Is MATIC A Buy, Hold Or Sell?

Rising interest from developers in Polygon's network would lead to steady growth of MATIC price in 2022. 

Polygon network highly benefits from the already established Ethereum blockchain in multiple ways, starting from Ethereum’s active and vibrant community, and established security system to transparency. 

Yet another key factor that’s driving the MATIC price is the increase in active wallet users. Polygon wallet users have increased rapidly and have hit over 282,760 last year. It already has over 350 applications running on its network, including some popular decentralized finance projects like Aave and SushiSwap. 

Additionally, the development of a photographic NFT platform through the Polygon blockchain is yet another noteworthy news for the Polygon Network, boosting the token's price. Taking all the activity and developments taking place on this network, Polygon seems to be a highly profitable investment option. 

Read Also: Polygon (MATIC) Price Prediction

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

A Cryptocurrency Under Close Watch — Now And Always

Polygon has positioned itself as the leading Ethereum scaling and infrastructure development platform. 

So could MATIC be a buy, hold, or sell right now? Polygon has brought numerous functionalities to the entire Ethereum blockchain, gaining several developers' attention. Moreover, with a solid team and an array of applications already built on the network, Polygon has a lot going for it this year, making MATIC an excellent long-term investment option now.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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