Why Polygon Is Going To Explode In 2023

Last Updated December 29th 2022

7 Min Read

Polygon (MATIC) saw a significant increase in price in 2021. An Indian-based cryptocurrency, the Polygon Network is an Ethereum multi-chain scaling solution.

With numerous partnerships and coalitions, 2021 was a tremendous year for the digital asset. Even though the coin had a small dip, it has rebounded faster than any other token.

Given its recent rally and the renewed interest in Polygon, the coin is likely to hit another record high this year as per predictions. However, let us see why Polygon is going to explode in 2023 in detail.

Looking At 2023: Is MATIC All Set For A Massive Rally This Year?

Polygon is a layer 2 scaling solution built on the Ethereum blockchain that helps in speeding up the transactions made on Ethereum based Dapps. It could probably be the network that offers a solution to the scalability issues of the Ethereum network.

Surprisingly, MATIC has risen above all other tokens and has gained over 14,100% returns in one year. By addressing the scalability issues across several blockchains, the project aims to increase cryptocurrency acceptance worldwide.

Here are some of the factors that back up the prediction that Polygon is going to explode in 2023.

#1: Unstoppable Growth

While looking at the price chart of Polygon, it is evident that since the beginning of 2021, the token has seen a significant rise, breaching a long-time resistance. It rose significantly and hit an all-time high of $2.92 on December 27th. The token trades at $2.41 as of writing.

Thanks to the increased use of its blockchain by gaming platforms, non-fungible tokens (NFT’s), and decentralized finance (DeFi), Polygon has witnessed a tenfold increase in its market gap. It surpassed $17 billion and is one among the top 15 crypto tokens in the world, according to CoinMarketCap ranking.

As MATIC was able to withstand most of the effects of the downdraft, several DeFi protocols are now flocking to Polygon, skyrocketing its price to higher levels.

#2: Significant Features Of Polygon (MATIC)

Polygon is an Indian blockchain scalability platform and is often called “the Ethereum’s Internet of Blockchain”. The project was initiated as MATIC Network but was rebranded to Polygon once its scope expanded.

A significant feature of the digital asset is its involvement with some of the hottest areas in cryptocurrencies, like DeFi, Dapps, NFT’s, and DAO's (Decentralized Autonomous Organizations).

The network’s goal is to enhance interoperability between Ethereum blockchain and compatible networks. It offers developers advanced tools that are needed to create a stand-alone network or a secure sidechain by deploying smart contracts and the Ethereum network’s security.

Polygon’s unique daily addresses active rose to a record high of 566,516 in October 2021. As more users accessed DeFi through its low-cost scaling solution, the side chain, Polygon, became busier than ever.

Tim Frost, the CEO of the Yield App said, “The almost fee-less trading Polygon offers offered a breath of fresh air to seasoned DeFi traders that have been suffering under the weight of extremely high gas prices [Ethereum fees] for some months now."

#3: MATIC Plasma Chain

MATIC rebranded its name to Polygon on February 9, 2021, in an attempt to be recognized on a global scale. Along with its rebranding, Polygon upgraded the system by bringing in promising metaverse projects and also integrated MATIC Plasma Chain. This integration enabled a layer one blockchain network that provides integrated scaling solutions for NFT, DeFi, etc.

With these upgrades, Polygon can enhance its network scalability and could onboard more projects in the coming decades.

#4: Reduce Ethereum’s High Transaction Cost

Ethereum has always been criticized for having a high fee structure for enabling transactions in the crypto space. But by adding layer 2 scaling projects like Polygon, decentralized finance protocols can easily bypass Ethereum’s high transaction costs, further opening up the platform to more users.

Polygon’s side chain architecture provides much faster and cheaper transactions on the network, generating much-anticipated hype in price and public perception of the network.

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Major Collaborations And Increasing Interests

Polygons’ dominance on all social media platforms rose by 10,000% in 2021. This growing popularity of the token has attracted the eyeballs of several institutions and billionaire investors, boosting its adoption rate.

The price rise and dominance data also expose that investors and institutions have been taking a more extensive interest in the currency.

Here are some of the recent partnerships of the token that might drive it to likely explode in 2023.

Partnership With The Consulting Wing Of Infosys

One significant partnership that Polygon has recently announced is with the consulting wing of Infosys. Infosys is an NYSE-listed global consulting and IT services company based out of India. The collaboration is named M-Setu. It is an open-source bridge for enterprises to interoperate with the Ethereum blockchain.

Collaboration With The Trace Network

Yet another notable collaboration that Polygon entered to expand its DeFi and NFT ecosystem is with the Trace Network. It hopes to establish a go-to for retailers to bring NFT’s usage to the public. The partnership will specifically focus on inter-chain links to remove clunky blockchain data silos.

By harnessing Polygon’s highly scalable layer-2 infrastructure, Trace Network will bring unprecedented traceability, transparency, and visibility to business operations worldwide whenever a retail brand makes a shift to NFT’s for ownership of their luxury items.

Support From Billionaire Investor Mark Cuban

Apart from all these partnerships, a notable factor that might lead Polygon to likely explode in 2023 is the immense support from billionaire investor Mark Cuban. He recently revealed that he has invested a significant amount in Polygon, which can be seen in his company's portfolio on their website.

Reports say that Cuban has plans to integrate Polygon into Lazy.com, which is a portfolio company that allows people to easily display non-fungible tokens (NFTs). He also advocates that Polygon’s ability to provide high Transactions Per Second is essential to lower the usage cost for users. Cuban’s investment has been a significant catalyst for Polygon’s impeccable growth this year.

Mark Cuban opined that "Having more TPS and lower gas fees is not enough. There must be a current network effect and significant user growth. This is a challenge for most L1s and L2s because, with few exceptions, marketing in the crypto universe is beyond awful. It is fast; it works well, and most importantly, their user base is growing exponentially."

Integration Of Polygon Assets To Google Cloud's BigQuery

Along with several other milestones, a significant announcement made by Polygon last May is also a major catalyst behind the token’s growth. The news stated that it had completed the project of integrating Polygon assets into Google Cloud's BigQuery. This integration allows users to access Polygon Blockchain Datasets that are now available on Google BigQuery, enhancing its accessibility and positioning.

Why Polygon Is Going To Explode In 2023?

It’s worth mentioning that Polygon has registered 250+ apps, more than 60 million transactions, and 700,000 unique users within a short time. It has emerged as a priceless network, which Ethereum developers can utilize for constructing apps on the Ethereum blockchain in a faster and cheaper manner.

Also, MATIC’s impeccable performance, especially amidst the market crash, proves that a cryptocurrency backed by strong fundamentals and support can likely hold its own against a price slide in Bitcoin. As such, the token could see record highs in the coming months unless Ethereum sees a sustained drop in usage.

But Polygon is a unique project with strong technology and immense support from various sectors of the market. Therefore, Crypto experts believe that even if Ethereum 2.0 is out, Polygon will still be gaining interest as its fees would still be significantly lower to move crypto across Ethereum.

Check Out: What Top 10 DeFi Cryptocurrencies Will Explode

The Bottomline

This made-in-India crypto token has been the hot topic of discussion lately in the crypto market. The success and adoption of the Ethereum network is also a reason why MATIC gained huge traction in 2021.

Even though Polygon only supports Ethereum base chains now, the network has plans to extend support for additional base chains in the coming years.

Given all these brilliant features, its current price rally, and plans to expand its network, Polygon might likely explode by the end of 2023, attracting more partnerships and projects worldwide.