Polygon Price Prediction - Will MATIC Rise in Value?

Last Updated January 17th 2022
20 Min Read

The Polygon cryptocurrency was warmly welcomed into the crypto industry when it launched in April 2019. But even with the warm welcome and attractive daily trading volumes, MATIC token prices remained well below $1 for close to three years.

Before the early 2021 MATIC token price rally, most analysts and crypto analysts had written off the ERC-20 token. They didn’t see it coming anywhere close to $1 soon. And it is easy to see why, after all, it was the native token of a relatively unknown blockchain start-up in Mumbai, India, fighting against properly-funded blockchain blue chips in the race to scale Ethereum.

Today, Polygon has proved its worth. Drawn in hundreds of DApp and DeFi protocols and earned itself celebrity endorsements. Now everyone wants to know if MATIC token prices will keep rising. They want to know what MATIC tokens will be worth by the end of the year and by 2025.

In examining Polygon token price’s future, we will base most of our predictions on Polygon’s past price action, fundamental factors expected to influence its price action, and the opinions of acclaimed crypto industry experts.

First, though, we look at what makes polygon unique and the role this uniqueness will play in influencing MATIC token future price action.

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Contents:

What is Polygon And Why Is It Unique?

Polygon was previously referred to as the MATIC Network but rebranded in February 2021 - only retaining the name MATIC for the token. It was co-founded by two blockchain experts and one business consultant - Sandeep Nailwal, Jaynti Kananui, and Anurag Arjun - on the Ethereum blockchain, but moved to its network in early 2019.

Powering this on-chain scalability solution is MATIC tokens, whose price is currently ranging between $1.2 and $1.00. There is a maximum supply of 10 Billion MATIC coins, but the current circulating supply stands at 6.3 Billion coins.

At its core, Polygon is a layer 2 solution of the Ethereum blockchain that seeks to address the challenges of scalability and high gas fees as well as the slow transaction and confirmation processing speeds inherent to the Ethereum blockchain.

But isn’t that the exact thing that Polkadot, Cosmos, and Avalanche are trying to achieve? Well, it is. However, unlike Polkadot and the rest that use an off-chain approach to solving these issues, Polygon offers an on-chain solution. This implies that it is securely hosted and will continue operating within the Ethereum ecosystem.

So, what impact has this uniqueness had on Polygon token prices?

Read Also: Is Polygon A Good Investment And Should I Invest in MATIC?

Polygon in 2022: Everything You Should Know

We say Polygon had a warm welcome into the crypto industry because when it launched as MATIC Network in 2017, it quickly became of the most popular projects on the Plasma Framework. This is a scalability framework proposed by Ethereum co-founder Vitalik Buterin as a layer 2 solution to de-clogging the Ethereum blockchain and facilitating faster and cheaper transactions.

MATIC Network had used a customized version of the Plasma framework and built it atop proof of stake checkpoint to establish an Ethereum sidechain. But then, considering the highly dynamic nature of the Ethereum blockchain, the fascination with the plasma framework waned, and the ETH community’s attention shifted elsewhere.

To keep up with the changing Ethereum blockchain dynamics and keep the Polygon alive, MATIC Network creators were forced to innovate. And they set out towards establishing an exponentially scalable and highly multi-chain system that is versatile enough to keep up with the rapidly changing ethereum dynamics. This has elicited a lot of excitement, sending the MATIC token prices on a run and drawing in both collaborations and endorsements.

But what specific aspects of Polygon have the greatest influence on MATIC token prices? We look at the two most fundamental.  

Multi-chain system

The Polygon Technology website describes the network as a fully-fledged multi-chain system that brings together and builds a link between Ethereum and all other sovereign blockchains. As a platform through which developers can connect their sidechains and other protocols to the Ethereum network while taking advantage of faster transaction speeds and low fees.

It sets itself apart from such other scalability solutions as Polkadot, Cosmos, and Avalanche in the sense that it provides users with multiple scaling options - and not just Plasma. The network’s co-founder and COO, Sandeep Nailwal, even compares Polygon to the Amazon AWS service that gives enterprises the option of linking to multiple servers options like Linux and Windows.

This has made Polygon popular with not just developers but the entire Ethereum community. Further, Polygon has future-proved itself by ensuring that it is 20X faster than the proposed Ethereum 2.0. And these core features of the scalability solution played a key role in fuelling its recent price jump.

Scaled decentralized applications

Polygon has also created a decentralized apps launchpad. Anyone can, therefore, use this platform to create an Eth-based decentralized app that enjoys layer 2 scalability and all other perks that comes with the Multi-chain system. Established DApps can also integrate the system into their apps and get to enjoy not just improved speeds and fewer fees but also get to interact with such advanced features as developer tools and oracles.

So far, the Polygon website states that 400+ DApps are currently using their technology to scale their performance. This is expected to spike the demand for MATIC tokens, which in turn pushes up their prices.

Polygon (MATIC) Price History

From early on - and unlike most third-generation altcoins - there was sufficient demand for MATIC tokens. This is evidenced by the fact that its daily trading volumes ranged from a few million to more than a hundred million dollars. Unfortunately, though, this demand wasn’t reflected in the altcoin price as it traded well below $1.   

On its first day of trading, for instance, MATIC token ended the session valued at $0.00547, according to Coingecko. Over the next few days, the warm, welcoming party helped push it above $0.03. But there wasn’t enough demand, at the time, to sustain a spirited uptrend. Similarly, there wasn’t anything outstanding about MATIC Network to warrant a significant rally.

Eight months later, in early December 2019, MATIC Token experienced a slight burp that saw the altcoin price rise above $0.04 for the first time. But this was closely followed by pump and dump accusations which saw MATIC token prices drop drastically and bottom at $0.008 by March 2020.

Throughout 2020, the MATIC Network fought hard to clear the air, and the coin posted marginal gains. But it was not until towards the end of January 2021 that MATIC tested the $0.04 highs again, effectively forming a base for the unprecedented price rally that followed.

Having started the year trading at $0.0175, MATIC token prices jumped by an incredible 15,000%+ in the first five months of the year to set an all-time high of $2.62 on 18th May 2021 - according to Coingecko. At the same time, the daily trading volumes spiked from a few million dollars to over $9 billion. 

Two months later, and largely due to the ongoing crypto market crisis, MATIC token prices dipped by about 260% to have the coin traded around $1 in the beginning of July. Similarly, daily trading volumes have also shrunk to a daily average of $1 Billion. In September Polygon traded for around $1.7 per coin until it reached its current all-time high of $2.92 on December 27th 2021.

Since then Polygon has slightly declined in price and is trading at $2.41 with trading volume at $17 Billion.

But how is Polygon expected to perform moving forward? 

Polygon (MATIC) Price Prediction 2022 - 2023

It is hard to accurately predict the future price of Polygon MATIC token, or virtually any other cryptocurrency. And you can tell by the wild underestimations of MATIC token’s price performance by even the most reputable price prediction websites earlier in the year. In most instances, the sheer number of variables influencing the next price action for a digital currency can be overwhelming. And it hasn’t stopped them from making future MATIC Token price predictions.

Long Forecast, for instance, estimates that Polygon MATIC token prices will rise steadily throughout 2022 and 2023 with minimal and shallow dips. Going into 2022, the price prediction website expects MATIC to settle at $3 by the end of January.

In February, Long Forecast estimates that Polygon MATIC will be caught in a range of between $1.86 and $2.92. It, however, expects it to resume the climb in April and May, closing at $3.2 and $3.71, respectively.

By the end of June, the website that uses technical analysis to come up with these price predictions estimates that Polygon MATIC will be trading close to $3.5. December is the coin’s best month of the year 2022, when the analysis expects the Polygon network token to trade between $3.55 and $4.41.

2023, especially the last six months, will be a good year for MATIC, according to Long Forecast. Polygon will reach $6.93 highest in July 2023, the highest predicted price for this year, according to the site. MATIC will trade between $4.27 and $5.47 by the end of the year.

Polygon (MATIC) Price Prediction 2024 - 2025 and Beyond

While MATIC tokens unprecedented rise was largely influenced by internal factors and not the Bitcoin rally, its drop can be directly attributed to Bitcoins drop. As it gains further popularity and is adopted as a medium of exchange and not just the native coin for Polygon, MATIC token’s price action is expected - like most other cryptocurrencies - to start taking a cue from Bitcoin’s performance.

Given that Bitcoin almost always rallies about a year after halving, probably the next biggest rally that carries with it Polygon MATIC will occur in 2025, after the 2024 halving. Long Forecast captures this in its price forecast when it indicates that MATIC will probably only be setting a base for a run above $6 in 2025.

According to the website’s analysis, 2024 is promising for MATIC tokens. Starting the year trading between $4.07 and $5.06, the token’s prices will gradually grow and trade below $6.90 for the better part of the year. November 2024 will be the best hit as Long Forecast expects the Polygon token to end the month trading at $8.16.

Polygon's price are expected to drop in 2025 when MATIC token prices remain around $5.50 and sustain this price level for the rest of the year.

These figures are just, but approximations and therefore do not seek to truly reflect the actual expected performance of MATIC tokens for the next four and half years. It is also a true reflection of all the crypto expert’s views of the token’s future.

For instance, a similar analysis by the CryptocurrencyPricePrediction website paints an overly bullish MATIC token future by indicating that the Polygon token will reach $7.31 by the end of 2022, $8.80 by September 2023, and $32.22 by December 2025.

These price predictions extremes can be quite confusing. But we choose to look at the bigger picture and the only similarity between the two price predictions analyses - that the MATIC token has a high chance of rising again over the next few years.

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Past Polygon (MATIC) Predictions That Came True

In the midst of overly optimistic and depressingly pessimistic views of MATIC Token’s past price predictions, you cannot fail to notice a few that came real close to getting it right. This then tells you that though it is painstakingly difficult to estimate the future price of a cryptocurrency - there is a chance you get it right.

In their MATIC Token price prediction of March 2021, for instance, analysts at Coinpedia had estimated that the altcoin might reach $2 before December. This prediction did not just come true, but it happened months before the target time. MATIC has even set an all-time high around this price projection.

The Future of Polygon - Why Experts See Strong Future Potential in Polygon

Polygon was never a major player in the crypto space before the April-May price run that saw it rise and feature prominently on the list of 20 largest cryptocurrencies by market capitalization. But as it gains popularity, onboards more developers, and earns more celebrity endorsements, it is expected to record rather wild price movements.

However, the crypto industry is confident that this token’s prices will recover and probably soar to new heights over the next or years. YouTuber and long-time crypto expert specializing in research, mining, trading, and investing - Ryan Matta - sees MATIC token rising to $4.50 in the long term.

On Twitter, Nina Wright, an investment specialist that has dipped both toes in forex and cryptocurrencies, has one of the most optimistic outlooks of Polygon MATIC token’s future prices. She predicts that the token will likely hit $8 during the next price rally - though she doesn’t explicitly state when she expects this rally.

Throughout this article, you can read the crypto experts and price prediction website’s optimism about the future of MATIC token in their forecast figures. Safe for the Long Forecast expected a dip of $0.9 in late 2024, but which quickly reverses, most are optimistic about the coin’s up-trending future.

But why the optimism? What informs their price predictions, and why do they believe that MATIC token has higher chances of rising again than tripping below $1? Drawing on the tokens fundamental and technical data, we can think of a few reasons that make its future seem bright. They include:

  • Mainstream adoption: Today, there are over 400 DApps utilizing the Polygon infrastructure. Key DeFi protocols like Sushiswap and Aave have already adopted Polygon the stream of others expressing interest or actively establishing connections keeps growing, which gives MATIC token prices a huge boost.
  • Further expansion of service: Sandeep Nailwal argues that Polygon as a project will never be completed because it is constantly accommodating the different technologies built on Ethereum. As it onboards more service offers that draw in different Eth blockchain players, so will the demand and price of MATIC tokens increase.
  • Celebrity endorsements: Mark Cuban recently announced his intention to invest in Polygon. Such a move gives Polygon the much-needed exposure and emboldens other equally moneyed investors to the layer 2 Eth technology.
  • Its unmatched scalability: The biggest threat to most Ethereum scalability solutions is that they will be under serious threat when ETH 2.0 launches. But Polygon has been able to prove that it still be 20x faster than ETH 2.0.

Check Out: Pros and Cons of Investing in Polygon (MATIC)

Conclusion: Is Polygon a Good Investment in 2022 and Beyond?

Looking at the Polygon price charts and going over its most recent price performance, we bet that you can’t help but ask yourself if it is a good investment today. You probably also wonder if it will rise again and how high up it can get in the foreseeable future.

Well, for starters, you need to look at the altcoins life performance, which tells you that it has always been up-trending - even when it was trading below $1. Crypto experts and price prediction websites then affirm this argument when they issue hugely bullish forecasts about Polygon MATIC token prices projected future.

As it stands, more DeFi protocols and Decentralized apps are lining up to integrate their platforms with Polygon and scale their performance. Comparing its 65,000 transactions per second against the 3200 to be processed by the proposed ETH 2.0, Polygon has shown that it won’t be a threat. All these make the altcoin all-too attractive to both medium and long-term crypto investors.

So How Much Will Polygon (MATIC) be Worth?

Evidently, crypto industry experts, market analysts, and even current MATIC token investors are confident that MATIC token will rise again and reach extreme highs over the next few years.

In the table below, we look at the potential highs and lows for Polygon token price between 2022 and 2025 as projected by DigitalCoinPrice.com.

Year High Low
2022 $3.51 $3.18
2023 $4.25 $3.40
2024 $5.21 $3.21
2025 $5.91 $4.32

 

Polygon is still a lowly valued cryptocurrency with a fixed and moderate maximum token supply. It is also one of the most innovative and interoperable projects on the all-popular Ethereum blockchain. Its upside price is growth is, therefore, very elastic.

But even as we invest, remember that cryptocurrencies are highly volatile and unpredictable instruments. You should therefore practise extra caution when dealing with one of them. We especially advise that you complement this paper with your own research when deciding when and how much to invest in MATIC. 

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