Polygon Price Prediction - Will MATIC Rise in Value?

20 Min Read
Last Updated July 23rd 2021

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 2021: 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 have dipped by about 260% to have the coin trade around $1 for the past few days. Similarly, daily trading volumes have also shrunk to a daily average of $1 Billion.

But how is Polygon expected to perform moving forward? 

Polygon Price Predictions in 2021

Having struggled below $1 for close to three years, most crypto experts and even price prediction websites didn’t anticipate such a huge jump. The fact that Polygon MATIC was late into the rally also explains the rather dim 2021/2022 price predictions for the altcoin at the beginning of the year.

Note that, unlike most other altcoins whose early 2021 price rally was kicked off by Bitcoin’s rally at the last quarter of 2020, Polygon MATIC only started rallying in February. And it was primarily due to the rallying crypto market but only after the announcement of their rebranding to Polygon.

In a January 2021 price forecast, for instance, CryptoHeraldDaily had projected that MATIC token’s future was bullish. But the technically analyzed rate at which the altcoin was expected to for the next 12 months to January 2022 was marginal. It indicated that the coin would only go as far as $1.3 by December 2021.

Soon after, MATIC token set the base for a price run but slightly before it broke off, sentiments started changing, and analysts became more bullish. But they still didn’t believe in a drastic climb. Analysts at Coinpedia, for instance, put up a MATIC token price prediction indicating that they expected the coin to grow to and eventually reach $5 in the long term. They then estimated that it could be worth around $2 by December 2021.

Undeterred, MATIC token went ahead to invalidate most of these price predictions when it crossed the $2.6 mark in May. And were it not for the market-wide shock and ensuing price drops, one may safely assume that MATIC token could have probably tested the $3 price level.

Moving forward, everyone is hopeful and relatively bullish on the future of the Polygon network tokens. Most forecasts point to a possible recovery and assume that MATIC Token prices will rise again and possibly retest the $2.6 level. Overall, they indicate that the coin may be trading around $2 by the end of the year.

Analysts at Coinpedia, however, peg this recovery and eventual rise on Polygon MATIC’s uptake as not just a token on Polygon but also as a currency. In addition to favourable crypto market conditions. If crypto investors feel that MATIC’s uptake as a digital currency has accelerated before the end of the year, Coinpedia argues that its prices may rally again and reach $1.883 by year-end. If this doesn’t happen and the FUD wrecking the crypto market today continues, they estimate that MATIC token prices may drop to $0.722.

Technical analysis by Long Forecast, on the other hand, isn’t as optimistic and indicates that the Polygon coin will grow at a slower pace and only end the year trading at $1.1.

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 start the year trading at $1.1 and hit as high as $1.37 some time in January before settling at $1.28 by the end of that month.

In February, Long Forecast estimates that Polygon MATIC will be caught in a range of between $1.10 and $1.28, but will end the month 10 cents below the end of January price. It, however, expects it to resume the climb in March and April, closing at $1.2 and $1.402, 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 at $1.49. This will then usher in the coin’s best month of the year 2022, when the analysis expects the Polygon network token to trade between $1.45 and $1.85 before ending the month selling for $1.75. 

It will, however, slip and continue with the wavy price action for the next remaining months of 2022 before ending the year valued at $1.22.

2023, especially the last six months, will be a good year for MATIC, according to Long Forecast. Polygon will, however, not be until August that MATIC’s performance will outdo the July 2022 highs when it ends the month trading at $1.77. The recovery would have started in April and will culminate with a shot above $2.07 in November and followed closely by a lisp that will have MATIC selling for $1.74 by the end of 2023.

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 $2 later in 2025.

According to the website’s analysis, 2024 won’t be as promising for MATIC tokens. Starting the year trading between $1.55 and $1.79, the token’s prices will gradually drop and trade below $1.50 for the better part of the year. October 2024 will be the worst hit as Long Forecast expects the Polygon token to lose parity with the dollar and end the month trading at $0.97.

However, much of the 2024 losses will be recovered in 2025 when MATIC token prices shoot above $2 and sustain this price level for the rest of the year. Long Forecast even expects it to beat the current all-time high when it ends July, trading at $2.83 but having clocked $3.03 at some point during the month.

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 $5.20 by the end of 2021, $15.22 by May 2022, and $59.47 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 - is confident that MATIC Token will rebound and reach $2.25 before the end of the year. In the long term, Ryan sees MATIC token rising to $4.50.

His sentiments and MATIC token analysis are echoed by yet another popular YouTube channel specializing in crypto discussions - Token Metrics. Here, the researcher is also convinced that the Polygon token will recover and trade around the $2 price level by the end of the year.

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 2021 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 2021 and 2025 as projected by DigitalCoinPrice.com.

Year High Low
2021 $1.72 $1.45
2022 $2.08 $1.65
2023 $2.65 $2.02
2024 $3.06 $2.47
2025 $3.64 $2.69

 

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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