Consider the potential behind Polygon's swooning price chart and what it may take to hit a bullish target of $3 per token.
In a world of perfect blockchain-based fintech and Web3 applications, Ethereum (ETH 2.94%) wouldn't need any help. The leading smart-contracts platform would be able to handle millions or even billions of transactions every day without skipping a beat. But in the real world, Ethereum runs a bit slow even after the switch to a faster proof-of-stake platform in the summer of 2022. It needs some help to address the full volume of smart-contract processes over the next few years.
That's where Polygon (MATIC 9.18%) comes in. Its separate layer of transaction-crunching blockchain systems serves to accelerate Ethereum while maintaining full compatibility with the original network.
Polygon is not the only way to accelerate Ethereum apps and services, but it is by far the most popular one with a niche-leading transaction volume and a market cap of $4.8 billion. The second-largest Ethereum booster is Arbitrum (ARB 2.53%), a minnow with a total market value just below $1 billion.
The Polygon token's value peaked at $2.85 in December of 2021. The current price of $0.51 per blockchain token represents an 82% retreat from that short-lived top. Is Polygon poised to retake those lofty record prices any time soon, or will the $3 price target require catalysts we haven't seen yet?
Let's find out.
Polygon's project proliferation
Polygon's value relies on developers using this system to power their Ethereum-compatible projects. As such, a rising number of Polygon projects indicates growing long-term value for the token.
And I see a positive trend here. The Alchemy blockchain app development platform currently lists 892 Polygon apps and tools, up from 489 projects in February 2023. These project counts are lower than Ethereum's, but Polygon's activity is growing roughly twice as fast.
Pessimistic Polygon prices
However, Polygon's price has dropped 41% lower in 52 weeks, while Ethereum climbed 19% higher over the same period. In other words, investors seem skeptical about Polygon's future prospects even though the underlying Ethereum ecosystem is doing OK.
And don't forget about the vibrant activity Polygon's developer community is experiencing. That's still not enough to drive the token price higher.
Potential progress prospects
I see two possible explanations for Polygon's swooning price chart in this era of mostly positive value-driving trends.
- Polygon's bears may have sussed out a fundamental change in the Ethereum development ecosystem, rebalancing the component values with a heavier weight for the original Ethereum name. In this case, the current price trends make sense, and the story won't change until Polygon (and other alternatives to plain Ethereum tokens) can turn that irksome tide again.
- Or, most of Polygon's projects are still in early development and have not yet impressed investors with their sustainable potential. If so, Polygon should gain plenty of value as those apps and services enter the app stores of the world.
Both possibilities are plausible, but the second one seems closer to the truth.
Mainstream media has been eerily quiet about cryptocurrencies since last year's plethora of scandals and meltdowns. Polygon's surging project interest could have been big news in a year with more positive crypto attitudes, such as 2017 or 2020. I'm not saying that the pendulum of widespread crypto interest swings in a predictable pattern, but leading names such as Bitcoin (BTC 3.38%) and Ethereum have several potentially market-moving catalysts coming in.
Frankly, I'll be shocked if the current crypto winter doesn't thaw next year, with bullish effects for the market as a whole and leading solutions such as Polygon in particular. Crypto prices are impossible to predict with rock-solid accuracy, but I think Polygon stands a reasonable chance of reaching $3 per token in a year or two.
Anders Bylund has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Polygon. The Motley Fool has a disclosure policy.
FAQs
A price target of $3 for Polygon's token might be achievable given the uptick in development activity and a generally warmer climate in the cryptocurrency sector as a whole.
Can Polygon hit $5? ›
Most experts believe that in the next 5 to 10 years, Polygon could reach the $5 level. Again, this will come down to adoption and what projects end up on the network.
How high could Polygon MATIC go? ›
DigitalCoinPrice predicts that MATIC could reach $2.43 in 2023 and $3.91 in 2025. Their long-term projection for 2030 is $11.45.
Can MATIC reach $2? ›
Will MATIC hit $2? According to price predictions from researchers at Changelly, MATIC may hit $2 by mid-2025. The experts also predict the price of MATIC to be at a minimum of $1.04 and a maximum of $1.12 in March. Additionally, MATIC is predicted to reach an average of $1.09.
Can Polygon MATIC reach $100? ›
Whether Polygon (MATIC) can reach $100 is difficult to answer. It might be technically possible, but not within the foreseeable future. This is due to the fact that Polygon's bullish spike would require a significant increase in the adoption and usage of the Polygon network.
Will Polygon reach $3? ›
A price target of $3 for Polygon's token might be achievable given the uptick in development activity and a generally warmer climate in the cryptocurrency sector as a whole.
Can Polygon reach $50 dollars? ›
AMBCrypto's analysis presents an optimistic forecast, suggesting that Polygon (MATIC) could reach an average trading price of approximately $51.01 by 2030. Achieving this milestone would require Polygon's market cap to soar to around $750 billion, a target that currently seems unrealistic.
How high can MATIC go in 2024? ›
October 2024 is poised to be a month of significant gains for MATIC price, with the range expanding to $0.9 to $1.2. Technical analysis indicates a strong bullish momentum, fueled by the overall crypto market hype.
Can MATIC reach $1 000? ›
Can MATIC Reach $1000? It's not very likely. According to PricePrediction, by 2050 MATIC will reach $462 at its peak.
What will Polygon be worth in 2050? ›
According to our Polygon price prediction, the anticipated maximum trading price for Matic in 2050 is projected to be approximately $678.04. Our analysis indicates that by the year 2050, it could achieve an average price of around $625.16.
Value-boosting demand for the Polygon token should rise as Ethereum-based apps go mainstream. Polygon should rise from less than $1 to more than $10 over time, but other cryptocurrencies still look like more robust long-term investments today.
Which coin will boom in 2024? ›
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Bitcoin (BTC) | $1.148 trillion | $58,165.77 |
| Ethereum (ETH) | $283.894 billion | $2,360.14 |
| Binance Coin (BNB) | $79.354 billion | $543.77 |
| Solana (SOL) | $62.688 million | $133.91 |
6 more rowsBased on our long-term Polygon Coin price forecast, we anticipated that prices could reach a new all-time high this year. By 2040, the maximum price of the MATIC Coin is projected to be around $31.26. Our average price forecast for Polygon is $30.62 in 2040.
Will ADA reach $100? ›
Wild price predictions are circulating on the forums and the Cardano reddit, ranging from a few US dollars to a whopping $1000 per ADA in five years time and even though a lot may happen in five years, a price of $1000 or even $100 is not very likely to happen.
Which crypto will boom in 2026? ›
Solana's ability to handle thousands of transactions per second has made it a go-to choice for developers and projects seeking a fast and efficient blockchain. With its expanding ecosystem and increasing adoption, SOL is poised for continued growth, making it a strong contender for substantial gains by 2026.
How high can ADA go? ›
Long-Term ADA Price Prediction for 2027-2030
| Year | Potential Low, $ | Potential High, $ |
|---|
| 2027 | 4.56 | 5.03 |
| 2028 | 5.29 | 5.73 |
| 2029 | 6.68 | 7.79 |
| 2030 | 9.12 | 10.32 |
May 22, 2024
While it is difficult to predict prices of tokens and their long term value, following the current pattern of 20% yearly growth, it would take more than 30 years for MATIC to reach $1000. Overall Polygon has seen steady innovation and funding rounds over the years which indicates a promising future.
What will Polygon be in 2025? ›
Polygon (MATIC) Price Prediction 2030
| Year | Price |
|---|
| 2024 | $ 0.382412 |
| 2025 | $ 0.401533 |
| 2026 | $ 0.421609 |
| 2027 | $ 0.44269 |
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