Investors have been keeping an eye on Polygon since its launch in 2017. Previously using the name Matic, Polygon is one of the many blockchain-based coins which work off of the Ethereum blockchain. Polygon is focused on decentralised economic improvement globally and is a seasoned Defi player.
As well as being highly compatible with Ethereum decentralised applications (DApps) Polygon can exchange data readily with the Ethereum blockchain. Investors have been impressed by Polygon’s union of the secure operational capabilities of Ethereum with Polygons flexible, scalable, decentralized potential.
Polygon has built itself up towards being a frontrunner in the decentralized financial (Defi) sector. They manage the digital securities on their blockchain protocol to offer high-level asset flexibility and security to their users.
They also offer a traditional style of currency that trades tokens in a recognisable way to fiat currencies. This appeals to many investors, particularly those new to the landscape of cryptocurrency trading.
The native coin MATIC has kept the initial token name and uses the standard ERC-20 Ethereum token as a basis for its coin. This is a common system used by many of the altcoins which are currently thriving in the cryptocurrency market.
Polygon is putting a new spin on some of the foundational aspects of cryptocurrency and matching up innovation with security. This is making it a competitive choice when looking at new cryptocurrency investments in 2022.
When making a new cryptocurrency investment it is important to factor in the background of the coin you are looking at.
Polygon Basics
Polygon is simplicity focused and has developed its infrastructure to be highly scalable. This is because it can connect with a huge range of existing DApps and Ethereum-based trading platforms while remaining an independent service provider.
The two fundamental parts of Polygon are its framework and its protocol. The framework aspect allows for great expansion and scalability. It generates blockchains that are Ethereum compatible and these include applications to stake MATIC and gain proof of stake consensus security for transactions. They can also be used for governance of the Polygon system and to solve disputes and provide huge development potential. This gives MATIC holders more say in the system that they are investing in going forward.
The protocol focuses on maintaining security for Polygon users. It controls the movement of data between polygon blockchains and also polygon interactions with Ethereum blockchain applications. The Polygon protocol is designed to be simpler than other Ethereum-based options and therefore charges very low fees, which is a huge factor for investors to consider.
To earn profits on the MATIC coins that you are currently holding you can stake the transactions of other users for further profit. This is then added to the available profits gained from trading MATIC as an asset in its own right to proved greater returns overall.
When users stake transactions they can generally be grouped either as validators, who facilitate exchanges full-time, or delegators who have less responsibility. Most investors are unlikely to act as validators as this is a high-commitment role compared to delegator staking. Delegator staking can then lead to further profits as well.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Polygon Secure Chains
The Polygon system splits its blockchain networks into stand-alone networks and secured chain networks. Both are compatible with the Ethereum blockchain.
The secured chains do not have a validator pool of their own, instead, Ethereum directly provides the security or other professional validators, fraud-proof systems or validity proof systems can all be used for this. This is a less independent way to operate which offers less flexible user options. But it is popular due to the high level of security.
Some prefer the stand-alone chain option due to the complete autonomy. A stand-alone network is completely responsible for its own security and must set up a system for this. These are completely flexible but the independent aspect involves extra work setting up a system of validation.
When interacting with Polygon as a user it is important to check what sort of chains you might be interacting with and which may be staking your MATIC coins.
Read Also: Is Polygon A Good Investment And Should I Invest in MATIC?
The Layers of Polygon
Layer 1 - Ethereum Layer - This layer is highly programmable with smart contract functionality which allows for stalking cryptocurrency, sending data and problem-solving.
Layer 2 - Security Layer - This layer is optional and offers a paid service that can check Polygon chain validity anywhere on the system. This offers an extra layer of security when needed.
Layer 3 - Polygon Networks Layer - The layer of connected Polygon blockchains working in the platform to share data and complete user-directed functions.
Layer 4 - Execution Layer - This is where transactions are understood and completed using logic and implementation protocols.
Dharma and Polygon
The September Dharma wallet launch has caught the attention of investors as it allows trading from USD to Defi cryptocurrencies directly from users’ bank accounts.
This went live on the Polygon system on the 3rd of September 2021 and has made a huge impact on accessibility and MATIC coin adoption. Buying and swapping tokens has become far easier given this new area of functionality.
Polygon (MATIC) coins can now be exchanged and sent globally between users which creates a much more effective global currency system than Polygon was previously able to offer. This is a huge factor for prospective investors and a big reason for increased interest in Polygon as we move into 2022.
The Dharma app has made a huge impact on the Defi sector already. Dharma charges extremely low fees as well as offering a new level of easy access to cryptocurrency trading.
Dharma is an Ethereum based DApp which is why it is so compatible with Polygon and is such a benefit to Polygon investors.
Check Out: 15 Reasons Why You Should Invest In Polygon
Trading MATIC To USD
The 2021 crypto market surge could not come soon enough for Polygon as MATIC had been trading sideways in a sustained pattern in the previous year. As the bullish market trading built momentum in early 2021, MATIC finally began to climb in price, reaching its all-time high of $2.68. This was excellent growth for this low-cost coin, taking it towards the next target of $3.
This major surge occurred in May 2021, and despite the steep correction, was followed by a second surge. However, from June onwards MATIC began to drop in price as the crypto market began to see its previous bullish trading tail off. The MATIC price had dropped below the $1 mark by mid-July, following the sector-wide price dip.
July and August have been poor trading months across the cryptocurrency market, but many investors have used this time to buy the dip which prices are low. MATIC saw a steady decline but did not perform any worse than was expected due to the market-wide trading climate. The recovery period moving into August have been very positive and MATIC has shown greater recovered than was expected of it in a short period.
The most recent trading has been much more promising for MATIC. Over August and September 2021 MATIC has worked back towards its previous high and has been nearing the $2 mark. The volatile trading cycles have allowed for profitable swing trading. The current trading pattern of micro surges is expected to continue through the final quarter. This should lead to a profitable end to the year for those buying the dip and making the most of the volatile cycles that MATIC is following during this trading period.
Will MATIC Rebound From The Last Correction?
It is looking very positive for MATIC as we move into the first quarter of 2022. The volatile trading cycles are forming an overall positive upward trajectory as they push towards 2022.
The initial correction following the peak was followed by a second surge, creating a very promising president for MATIC’s performance going forward. The next dip which took place much more slowly over June and July is going to take a long route to complete recovery.
The previous all-time high of $2.68 is likely to rake until the end of 2021 to fully recover based on the current coin price of $1.98. However, this should start MATIC off at nearly 2022 as we begin the first quarter of 2022. This is promising for those buying the dip to capitalise on the upward recovery trajectory currently taking place for MATIC.
Don't Miss: Polygon Price Predictions
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Predictions For Polygon (MATIC) In 2022 And The Future
The long term predictions for Polygon are positive, with growth expected throughout 2022 and into the following five years. There is a debate occurring between market analysts about how fast the growth will be for Polygon MATIC. The 2022 financial year is expected to start around the previous all-time high of 2.68 with MATIC surpassing the $3 mark early in 2022.
The long term predictions then become more spit with experts unsure if polygon will fail to achieve $4 in the same year. However, some more optimistic predictions are placing MATIC at $8 by the end of 2023, expecting the price to be at $15.50 by 2026. This would be a very good steady increase for MATIC, providing consistent returns at a sustained bullish pattern of volatile peaks.
Those who are expecting slow growth for MATIC think that the cryptocurrency will remain slow-growing and will only have approached $6 by 2025. This would be a less favourable performance for new investors. However, it would still prove profitable, particularly for those looking to invest in five-year blocks going forward.
MATIC Trading Forecast for 2022
The forecast for 2022 is looking very good following the Dharma move made by Polygon in early September 2021:
‘1/
Goodbye Gas Fees, Hello Polygon
@0xPolygon is now live on @Dharma_HQ for all users.
Buy & Sell 2,000+ tokens on Polygon with USD and pay 0 Network Fees.
From Dollars to DeFi in a Tap — now with no network fees ‘
@OxPolygon, Twitter account of Polygon (MATIC)
The joint project between Polygon and Dharma has made trading cryptocurrency even easier as transactions can be made from central banks quickly and cheaply. This is great news for investors who want to keep their eye on the market and for those who are interested in swing trading.
This recent move should boost MATIC adoption moving forward and give the currency a significant price boost throughout 2022. This theory is also supported by the other headway made by Polygon in the DApp side of their expansion. Polygon has partnered with several gaming centres which are working on DApps:
‘We are glad to announce that @DecentralGames,
the first community-owned, Metaverse casino has
partnered with @0xPolygon @_PolygonStudios
to solve challenges around scalability, interoperability, speed,
and transaction costs during play-to-earn games.’
@OxPolygon, Twitter account of Polygon (MATIC)
This is likely to push Polygon adoption even further in 2022 and this would positively impact MATIC coin prices.
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FAQs
Who is behind Polygon (MATIC)?
Polygon, originally called Matic, was founded by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun and Mihailo Bjelic. These four co-founders form the core team that is behind launching Polygon.
They are also advised by two key figures in the field of decentralized trading platforms as well as members of the Ethereum team who oversee the interaction between Polygon and the Ethereum blockchain system that it works off of.
What is Polygon (MATIC)?
Polygon is a platform built off of the Ethereum blockchain which uses its specific protocol to connect other applications which are using the Ethereum system. By connecting these networks of blockchains that are compatible with the Ethereum system they allow easy trading of assets.
The Polygon system uses the native coin MATIC in its protocol and this can be traded as an asset in the cryptocurrency market. The system is focused on being secure and decentralised to allow scalable market trading as well as promoting Ethereum DApps to work together and expand.
How does Polygon (MATIC) compare to the market?
The MATIC crypto coin has performed well in the cryptocurrency market during 2021 and has proved itself a robust altcoin. It is a cheap altcoin with good scalable potential.
Polygon (MATIC) is currently ranked 17nd by market capitalization, with a market cap of $13.4B at the time of writing. This is a very good position for an altcoin on the cheaper end of the market. This gives Polygon very good growth prospects.
Should I invest in Polygon (MATIC) in 2022?
Polygon (MATIC) has suffered during the bearish trading period during July and August. However, this has affected the cryptocurrency market as a whole as is not a reflection on MATIC as a coin.
However, this bearish trading period has brought down the price of Polygon (MATIC), making this a good time to buy the dip. Those buying MATIC now stand to make good percentage returns as the market stabilised.
Is Polygon (MATIC) still going to go up?
Polygon (MATIC) is expected to continue to increase in price. The trading cycles are volatile for MATIC currently, however, the overall trajectory is moving upwards.
MATIC is predicted to continue on an upwards trading trajectory throughout 2022 and onwards into the next few years.
What will MATIC prices rise to in 2022?
MATIC is expected to rise to return to its previous all-time high of $2.68. MATIC is then expected to exceed the $3 mark in 2022.
Experts are predicting that MATIC will achieve between $4 and $8.15 by the end of 2022. The upward trading cycles are expected to continue as the coin’s market adoption grows.