Should You Buy Polygon (MATIC)?

Last Updated May 16th 2022
32 Min Read

Is Polygon’s MATIC a Millionaire Maker Coin?

Have you been thinking tirelessly about the possibility of investing in Polygon’s MATIC? Well, you should know that Polygon is not only one of the most popular layer 2 scaling solutions in the market. Its novel token, MATIC, is the 17th largest digital asset globally. 

This article takes an in-depth look into Polygon, its core areas of business - and most importantly for prospective investors - the pros and cons which can help answer the question: Should You Buy Polygon’s MATIC? 

Polygon (MATIC) is one of the most popular DeFi coins in the saturated market of cryptocurrencies. MATIC returned more than 13,900% in 2021 for investors who believed in the digital asset. Just like AAVE, YFI, COMP, and UNI, MATIC plays a primary role as a governance token that can be used for staking as well as managing all the transactions on its issuing authority, Polygon. 

MATIC is among the highly volatile cryptocurrencies. This is the primary reason why growth investors, day traders, cryptocurrency traders, and decentralized finance (DeFi) enthusiasts could benefit greatly from having the digital asset in their portfolio of investments. 

With more partnerships being formed that have seen more decentralized applications integrate with Polygon, is MATIC a good investment in 2022? Right from the onset of the project, Polygon had the backing of Coinbase and Binance, is Polygon (MATIC) a good crypto to buy in 2022? 

Most importantly, for novice traders and investors - what are the pros and cons which can help answer the questions: what is the future of MATIC coin and should you buy MATIC?

Contents:

Polygon At A Glance 

In this section, we will have an overview of the beginnings of the crypto project. In simple terms, what is Polygon, the history of Polygon, how many Polygon MATIC are there, and the price performance of MATIC from 2019 to date? 

The History of Polygon 

Polygon started as the MATIC Network in October 2017. After Ethereum’s success with Ether as a cryptocurrency that can also power decentralized applications made possible by the triggering of smart contracts, blockchain developers Jaynti Kanani and Sandeep Naiiwal took notice and decided to act. Ethereum was not the sole blockchain technology that was having problems. Deloitte made it known that the primary factor affecting the mainstream adoption of blockchain was scalability.

The two developers were joined by a non-programmer Anurag Arjun who brought his business-savvy skills to the table. After seeing decentralized applications scale relatively slower, the founders realized Ethereum is the first-mover of smart contracts but it has several limitations. Among the limitations are low throughput, poor UX (delayed proof-of-work finality and gas), and no sovereignty in the form of governance dependence, a tech stack that is not customizable, and a shared throughput/clogging risk.

At the time, the MATIC network found solutions that would provide an interoperability protocol for exchanging arbitrary messages with Ethereum and other blockchain networks, modular and option “security as a service”, growing set of modules for developing custom networks, one-click deployment of preset blockchain networks, and adaptor modules for enabling interoperability for existing blockchain networks.

On Tuesday, 9th February 2021, the MATIC Network rebranded itself as Polygon and continues to use its solutions to scale DAPPS and other blockchains relatively faster than the throughputs they were earlier on used to. 

What is Polygon?   

According to its official website, Polygon is a protocol and a framework for building and connecting Ethereum-compatible blockchain networks. It also helps aggregate scalable solutions on Ethereum supporting a multi-chain Ethereum ecosystem. To help you understand what Polygon is, consider the Graphics of a computer.

When the Graphics of a personal computer is low, playing certain video games becomes extremely difficult and this slows the gameplay. Installing the same video game on a personal computer with high Graphics enables the game to run relatively faster than what you were used to.

That is what Polygon does. Ethereum scales transactions slowly. When developers deploy their decentralized applications on Polygon, it provides them with a relatively faster processing speed that is lacking on Ethereum. 

Polygon goes by the ticker symbol MATIC. MATIC is the symbol associated with Polygon across the cryptocurrency exchanges globally. 

What Is The Purpose Of Polygon?  

Polygon was purposely built for the scaling of Ethereum DAPPS and other sovereign blockchains. This is done by features such as ETH Compatibility, Scalability, Security, Sovereignty, Interoperability, User Experience, Developer Experience, and Modularity. To put it simply, Polygon increases the processing speeds of all applications and blockchains that are deployed on its network. 

How Many Polygons Are There? 

As of the time of writing, 7.85B MATIC coins are circulating in the market from a total and maximum supply of 10,000,000,000 MATIC coins. This means that 78% of the coins have been mined, leaving 22% up for grabs. 

MATIC Price Performance 2019

As per data retrieved from CoinMarketCap, Polygon’s MATIC appeared on cryptocurrency exchanges on 28th April 2019. MATIC opened at $0.0045.

On its opening day of trading, MATIC saw an impressive interest from investors which reflected in its trading volume of $8,408,136. Since that day, MATIC has experienced bullish days where the cryptocurrency reached new highs and bearish seasons where the digital asset tested new lows. 

MATIC closed on 30th April 2019 at $0.004478 with an increased trading volume of $25,072,706. The novel token powering the Polygon Network opened at $0.02 on 1st June 2019 and closed the month with a trading price of $0.02

After the new high lows suffered by Bitcoin in 2018, the year 2019 was billed as a year of recovery for cryptocurrencies. MATIC ended the 3rd quarter of the year on 30th September 2019 by trading in the range of $0.01 and $0.02 with decreasing trading volumes. MATIC reached a new all-time high of $0.03 on 28th November 2019. With the increasing trading volume that crossed $100 million on 6th December 2019, MATIC tested a new high of $0.04 on 5th December and finally settled at $0.01 on 31st December 2019. In the process, MATIC returned as much as 121.19% for investors who purchased the digital asset on its opening day. 

MATIC Price Performance 2020

After the 1930s recession and stock market crash of 1987, the financial crisis of 2008 was the last major crash the global economic world had seen in 12 years. This changed when the coronavirus pandemic of 2020 took hold of every aspect of humanity including the financial markets.

This led MATIC and other altcoins following Bitcoin (BTC) to plunge to new all-time lows. New cryptocurrencies that did not have a strong base headed for extinction and numerous analysts feared the worst for MATIC. Fortunately, the digital asset survived and helped maintain the investments of long-term holders. 

MATIC opened 2020 at $0.01 and closed January at $0.02. Based on the need to find digital assets with a huge potential in the market, numerous traders and investors poured liquidity into Polygon’s crypto with an eye on raking in returns in the long term. MATIC opened at $0.02 on 1st March, retested $0.03 on 8th March, and started to plunge during the peak periods of the pandemic. With millions of people selling their holdings, MATIC plunged to a new high low of $0.007011 on 13th March. The crypto-token picked up the pieces and closed the 1st quarter of 2020 on 31st March at $0.01

Polygon’s coin continued to trade in the range of $0.01 and $0.03 through May, June, July, August, and September. MATIC declined from $0.03 back to $0.01 at the end of 2020. There was no significant change in the opening and closing day prices of MATIC. This means that 2020 was a year of survival for MATIC. Once it was able to weather the selling pressure and extinction of other altcoins, MATIC was destined for greater things with an eye on 2021 and the long term.

 MATIC Price Performance 2021 

The year 2021 was a great year for mainstream cryptocurrencies as well as decentralized finance (DeFi) and their crypto trading tokens. With the distribution of two stimulus checks in April and December 2020, the market has begun to see a new wave of traders and investors pouring billions of dollars into digital assets.

They are unsophisticated. This means that instead of relying on fundamental and technical analysis-backed investment decisions, they rely on speculation and social media feeds to guide their actions. This saw a spike in the prices of all cryptocurrencies. Aside from them, there have been huge institutional investments made by Mutual Funds, Hedge Funds, Tesla, and the largest digital asset management firm GRAYSCALE.

It has not been all bullish as dips are unavoidable in the high volatility asset class of cryptocurrencies. This has also led to a plummet in the price of digital assets after more than half of them reached new all-time highs in May and November. 

MATIC began 1st January at $0.02. With the daily trading volume increasing substantially throughout the month, the crypto token re-tested $0.03 and $0.04. MATIC soared to a new all-time high of $0.05 on 27th January. It eventually ended in January with a trading price of $0.04. In just 30 days, MATIC doubled the investment of holders.

Bitcoin (BTC) crossed $40,000 for the first time in February and other altcoins such as Ether (ETH), Binance Coin (BNB), and Polygon’s MATIC followed. After opening at the price it left off in February, the novel token powering Polygon crossed $0.06, $0.07, and $0.08 for the first time on 5th, 7th, and 8th February. On 9th February, MATIC was worth more than 10 cents for the first time in its crypto trading history. MATIC ended February by testing an intraday high of $0.23 and finally settled at $0.23. In February, MATIC returned an impressive 475% for traders and investors. 

The biggest announcement came in March when Elon Musk announced Tesla will be integrated as an option of payment. This sparked a boom in the price of BTC towards the end of March and the month of April. Altcoins benefitted indirectly from BTCs rally to new all-time highs.

On 1st March 2021, MATIC opened at $0.23 and began to cross several price milestones. MATIC crossed $0.30 on 9th March and was worth half a dollar on 11th March. This rally led several long-term holders to let go of their holdings. MATIC strived hard to resist selling pressure. On the last day of March, MATIC closed at $0.36. This meant the crypto trading asset returned as much as 56.5217% for investors. 

In April, MATIC showed signs it could be worth $1. After opening at $0.36, the cryptocurrency was worth $0.41 on 15th April. The novel token that can be used for governance and also settles transactions on Polygon reached new all-time highs of $0.84 (27th April), $0.89 (28th April), $0.92 (29th April), and $0.94 on 30th April. With a boom in the interest of decentralized finance which led several developers to deploy their applications on Polygon, MATIC returned 161.111% for investors. 

Polygon’s MATIC spiked in price in May due to the increased exposure it gained from being listed on the top cryptocurrency exchanges globally. MATIC opened at $0.82 on 1st May and touched $1 for the first time on 9th May finally settling at a new all-time high of $1.05. With daily trading volumes reaching more than $1 billion, MATIC reached an all-time high of $2.68 on 18th May. With trading volumes at an all-time high of $9 billion on 24th May, MATIC closed on 31st May at $1.88 based on crackdowns on digital currencies. 

June was not kind to MATIC as it traded for less than 50% of its all-time high. MATIC opened at $1.87 on 1st June and settled at $1.10 at the end of the month. MATIC reached $1.7 again in September and a new all-time high of $2.92 at the end of December 2021.

 MATIC Price Performance 2022

MATIC started the year trading at $2.57, but in the second half of the month started slowly to drop and hit $1.5 on 24th January. MATIC closed the month at $1.64. In February the coin was traded between $2 and $1.4 and closed the month at $1.6. In March the price was fluctuating between $1.67 and $1.36

Following the downward trajectory of Bitcoin (BTC) in April, the price of MATIC dropped to $1.03 by the end of the month. Bitcoin plunged to $26,759 on the 12th of May, which resulted in MATIC hitting a low of $0.6.

At the time of writing, MATIC is trading around $0.7.

Several analysts believe MATIC could reach new milestones by the end of 2022 and beyond. What are the drivers behind such predictions? To put it simply, what are the pros and cons of investing in Polygon’s MATIC that makes it a good investment?  

The Pros Of Buying Polygon’s MATIC 

What are the pros of investing in MATIC that can certify MATIC as a financial instrument worth your hard-earned money?

✅ MATIC is Very Affordable

Affordability is an essential part of investing in MATIC and other cryptocurrencies. At the time of writing, MATIC has a trading price of $0.7. At such a price, the digital asset falls into the budget of millions of people. Buying 1000 MATIC will cost $700. This investment is in the range of small-time investors. The same cannot be said for cryptocurrencies such as Bitcoin (BTC) which is trading above $30,000 and Ether (ETH) that commands a price of more than $2,100.

For growth investors, especially, who look forward to seeing a growth in Polygon as the issuing authority which can have a reflection in its native asset, MATIC, the crypto trading asset can result in enormous gains from a little sum of money. With its price, MATIC provides a great vehicle for you as an untested investor who is afraid of making huge losses on an investment in BTC or ETH.

With the continuation of the Polygon Team to form partnerships with other financial technology companies, MATIC will continue to see activity since it will be used on the Polygon network to settle transactions. Polygon will continue to record great volumes on its platform. This will transform the liquidity being poured into the asset through its network to positively reflect in the valuation of the cryptocurrency. 

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

✅ MATIC is Very Accessible

One of the most trending questions online is, where can I buy Polygon crypto, where can I buy MATIC? MATIC has been listed on popular cryptocurrency exchanges. But does having a digital currency listed on a top exchange guarantee its success? No, it does not.

But it does expose the crypto trading asset to millions of people who can act on the asset without having to hop from one exchange to the other. You must know that one of the primary drivers of the price of a cryptocurrency is its exchange listings. Polygon’s MATIC is listed on the largest cryptocurrency exchange in the world called Binance. Although Binance has been hit by the Financial Conduct Authority (FCA) of the United Kingdom, it continues to rake in billions of dollars in volume daily. Other exchanges that list MATIC include but are not limited to eToro, OKEx, Huobi Global, Coinbase Exchange, and CoinTiger

With more than 200 million users across these exchanges, this explains the huge trading volumes the cryptocurrency has been experiencing. With more partnerships to come in the future after eToro listed MATIC in June, the digital asset will continue to reach new sets of traders and investors. This will contribute enormously to the future valuation of its price. 

✅ MATIC Continues to Record Impressive Trading Volume 

You should know that trading volume is one of the essential factors in fundamental and technical analysis. The trading volume shows the kind of activity a cryptocurrency is experiencing over a given period.

Once a particular cryptocurrency’s trading volume continues to see increasing declines, this is a sign that investors have lost hope in the future price patterns of that asset. Instead, they may have found a cryptocurrency that has great potential in the market due to the uniqueness of its issuing authority or through speculation. To give you an extensive insight into the importance of trading volume, let us consider the daily volumes of MATIC when it was trading below $1 and after it started trading above $1. 

MATIC opened on 28th April 2019 with a trading volume of $8,408,136 and had a price of $0.004521. With increasing volumes that saw MATIC record $74 million on 13th May 2019, activity reflected positively in price to see the digital asset close the day at $0.008667. With a trading volume of $168 million, MATIC traded for a coin at $0.01 by the close of 18th May 2019. On 20th May 2019, the novel token powering Polygon recorded a volume of $396 million and that was followed by $698 million on 21st May 2019. MATIC increased from $0.01 to $0.03. Once volume started to go down in September when $5 million was being recorded, MATIC moved back to $0.01. MATIC reached an all-time high of $2.68 on 18th May 2021. On that day, the trading volume of MATIC was $8 billion. In December when the price hit its all-time high of $2.9, MATIC's trading volume was $3.2 billion

Although currently, MATIC's price has dropped to $0.7 it still has a high trading volume above $1 billion.

As per reserve risk analysis, when there is investor confidence in an asset that is reflected in trading volume, the asset is considered an attractive investment. Since MATIC continues to see relatively higher liquidity, it is highly reflective of an attractive financial instrument that can be included in the portfolio of novice and experienced traders and investors. 

✅ MATIC Has a Finite Supply

According to CoinMarketCap, there are 7.85B MATIC circulating in the market. Fortunately, unlike other cryptocurrencies with an infinite supply, the team behind Polygon decided to gift MATIC an additional attribute aside from it being a governance token that can be used for staking and settling transactions on the network. MATIC can also be considered as a store of value. This is as a result of its total and maximum supply remaining the same. MATIC has been capped at 10,000,000,000. This means that 78% of the cryptocurrency has been mined. In the not-too-distant future, the remaining 22% of the digital asset can be taken off the market. 

Once this happens, scarcity is going to set in. According to the basic laws of demand and supply, once a product or asset is low in supply but high in demand, the price of that particular asset tends to go up. This is because sellers auction off the price to the highest payer and that effectively rallies the price to new all-time highs. Parent crypto Bitcoin continues to enjoy its status as digital gold because of its attribute as a store of value in the eyes of traders and investors. 

Scarcity is one of the factors that can lead to a price increment in MATIC. Keep your eyes on the circulating supply of MATIC, once it keeps going up, the price of the asset could increase substantially in the short and long term. 

✅ Polygon Continues to Launch New Products and Partnerships 

Partnerships 

Polygon is the most adopted scaling solution of choice for developers. The company is working with the majority of today’s top blockchain-based Web 3.0 games and NFT projects and has had big-name partnerships with NFT artist Beeple, Dolce & Gabbana, DraftKings and OpenSea.

In 2021 Polygon launched Polygon Studios, a subsidiary of Polygon that focuses on blockchain gaming and non-fungible tokens (NFTs).

According to Ryan Wyatt, the CEO at Polygon Studios, Polygon is the future of gaming on Web 3.0. The company worked with developers from The Sandbox, Decentraland, and Animoca Brands. These are part of the three biggest metaverses and games currently in the Web 3.0 sphere. Also, Polygon has already worked with MetaMask, OpenSea, and Forte.

This shows that Polygon has been in successful partnerships with the biggest projects in the gaming and metaverse industry. The future for Polygon Studios and its role in the gaming world looks bright.

In February 2022 Polygon raised a $450 million investment round, which was led by Sequoia Capital India and saw participation from SoftBank and Tiger Global

In March 2022 Telefónica Tech, one of the largest telephone operators and mobile network providers in the world, announced its partnership with Polygon, to use its network and tools to develop Web3 solutions.

Polygon continues to form partnerships and if this continues, MATIC will only get better in price. 

Don't Miss: Polygon Price Prediction for 2025 and 2030

The Cons of Buying Polygon’s MATIC 

What Are The Pitfalls Of Investing In MATIC? 

Despite the pros of investing in MATIC, you cannot rely on the drivers of the price of the cryptocurrency to finally settle on a decision. Although there are not many negatives associated with using Polygon or buying its novel token, we must consider the few pitfalls we found through our research. Let us take a look at the cons of investing in MATIC.  

❌ High Market Capitalization / Total Value Locked Ratio

According to the experts, the market capitalization and total value locked of a cryptocurrency communicate a great deal of information. Normally, the ratio of the market cap and total value locked (TVL) must remain below 1.

As of the time of writing, the market capitalization of Polygon is $5,4B and the total value locked stands at $6,8B

With so much money being poured into the digital asset, in no time, the market value is going to surpass the total value. Once this happens, according to the experts, this is a sign of an overvaluation of the digital asset. In the long term, if the analysis comes through, there could be a huge leap in price only to see millions lose their investments after a huge selloff plunges the asset into new high lows that may take years to recover from.

❌ Competition Is Catching Up 

There is competition in decentralized lending, insurance, yield aggregation, and exchange. In the same way, several developers have joined the layer 2 scaling solution space and this is gradually making the market saturated. With time, the number of users, deployments, and popularity Polygon enjoys may be taken away by other developers who would add more innovation to layer 2 solutions. This may not bode well for its crypto token MATIC. When this happens, thousands if not millions could find a new cryptocurrency that shows promise. MATIC may drop substantially as a result.

RISK ALERT! As an e-learning organization, we must continue to advise you about the risk associated with the trading and investing of MATIC and other cryptocurrencies. Do not send your money to addresses across social media feeds. Find a credible cryptocurrency exchange that will be able to hold your coins. More importantly, invest in MATIC and others with the amount of money you can afford to lose. Do not invest all your savings in crypto. You can spread your investments across crypto and less-volatile assets such as stocks, metals, and commodities.

Where Can I Buy MATIC / How To Invest In MATIC?

There are 100s of centralized and decentralized cryptocurrency exchanges. For safety and security purposes that will not see you fall victim to scammers, we would like to recommend eToro as the exchange that can provide a user-friendly, secure environment for you to go about your trading and investing activities.

The following steps provide essential details that will guide you to invest in MATIC.

  • Step one is the SIGNING UP PROCESS. You cannot buy MATIC if you do not have an eToro account. Just like creating an account online, you have to provide details of your full name, email address, contact number, and residential address. Unlike any type of account creation, you must input legal and authentic details as it plays a key role in successfully verifying your account. 
  • Step two is to VERIFY YOUR ACCOUNT. The Knowing Your Customer (KYC) phase is highly essential as it helps confirm the humanity of the person behind the smartphone or personal computer. Your email address and phone number will be confirmed first. 
  • Step three is the DEPOSIT OF FUNDS. You must deposit funds into your eToro account before you can be able to buy MATIC. Choose from a range of options such as PayPal, Skrill, iDEAL, Rapid Transfer, Credit/Debit Cards, Neteller, Bank Transfer, and Klarna/Sofort Banking
  • Step four is to NAVIGATE to the MATIC PAGE. On this page, you can invest in MATIC with the amount of money set aside to risk on digital assets. 

MATIC Price Prediction: What Are The Analysts Saying About Polygon’s Crypto?

Let us take a look at some of the forecasts made by analysts that answer questions such as, MATIC Price Prediction 2022, MATIC Price Prediction 2023, MATIC Price Prediction 2025, and What Will Polygon’s MATIC Be Worth by 2030? 

Digital Coin Price predicts MATIC to command a price of $0.94 by the end of 2022. The experts further project the digital asset to reach $1.12 by the year’s end of 2023, $1.16 (2024), and $1.43 by the close of 2025 in the short term. In the long term, the technical analysis-backed portal foresees MATIC trade for a coin at $1.30 on the last day of 2026, $1.81 (2027), $2.33 by the end 2028, and a new all-time high of $2.93 in 2029. 

Gov. Capital estimates MATIC to trade for a coin at an average price of $2.76, the lowest possible price of $2.34, and the best possible price of $3.17 by the end of 2022. On 31st December 2023, the experts expect MATIC to have an average trading price of $8.48, the lowest possible price of $7.21, and the best possible price of $9.75. The crypto prediction believes MATIC could trade for the best possible prices of $15.88 (2024), $25.20 (2025), $36.22 (2026), and $40.87 in May 2027.

The Bottom Line - Should You Buy Polygon’s MATIC? 

Polygon’s MATIC is one of the best performing cryptocurrencies in 2021 and will continue to bring more returns to traders and investors in the short and long term. Experts at Wallet Investor believe you should consider investing in Polygon’s MATIC.

According to the experts, MATIC could command a price of $1.436 in one year and a price of $4.18 in 5 years.

With that said, you should know that most investments come down to risk and reward. You should endeavour to ask the question, do the potential rewards in investing in Polygon’s MATIC outweigh the possible consequences of the risks? 

Polygon has several risks but the primary factor is competition from other layer 2 scaling solutions. On the other hand, Polygon continues to form successful partnerships with Cream Finance and Pickle Finance announced in the last week of June. In addition to this, MATIC continues to see liquidity due to its affordability, accessibility, consistent trading volume, and a potential scarcity to look forward to in the future. 

So, is Polygon’s MATIC a good investment? Investing in MATIC could result in huge gains in the future as early patrons of the asset at the beginning of 2021 saw a great return of more than 13,900% by the end of the year. Is it worth investing in Polygon’s MATIC? Investing in MATIC is worth your hard-earned money. This is because analysts have used fundamental and technical analysis and their conclusion forecasts the cryptocurrency to return at least 100% for investors by the end of 2022. 

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