History of Polygon
Polygon – falls in the bucket of Layer-2 sidechain solutions, affixed to the Ethereum Blockchain for solving the scalability issues of Ethereum by allowing speedy transactions. Moreover, it supports quick transaction settlement with a reduced gas fee.
Polygon cryptocurrency was launched under the name Matic Network in 2017. MATIC network combined Plasma driven solutions and Proof of Stake to overcome the scaling issues of Ethereum. It was also associated with other projects such as Decentraland and Marker during that time. The PoS chain and Plasma chain mainnets were launched in 2020.
MATIC became a favorite solution for platforms such as Coinbase and Binance, and they supported the MATIC group financially for its growth. Later in 2021, MATIC rebranded to Polygon. After that, major DeFi protocols were onboard with the network.
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What is Polygon (MATIC)?
Polygon network is a layer-2 decentralized Ethereum scaling platform that focuses on delivering scalability, security, and quick payments for large blockchains like Ethereum that suffer from high confirmation time and high gas fees. Ethereum, a giant DeFi platform, encounters blockchain overcrowding due to transaction overload.
Polygon (MATIC) works as a parallel chain solution to resolve the issues of scalability and delay in payment settlement. Developers rely on Polygon to scale their applications utilizing Polygon’s SDK stack and networks to provide customers with a good user experience.
Who Are the Founders of Polygon (MATIC)?
Polygon (formerly MATIC network) is an Indian-funded cryptocurrency launched in 2017. It was co-founded by Jaynti Kanani (CEO), Anurag Arjun (CPO), and Sandeep Nailwal (COO). When working as a data scientist at Housing.com, Kanani noticed the scalability issues associated with the Ethereum network, and he grouped with the other two and founded the MATIC project.
How Does Polygon Work?
Polygon is a multi-level platform that intends to enhance the performance of Ethereum and Ethereum compatible networks. It has a variety of sidechains to solve numerous issues. It supports two types of Ethereum compatible networks, secured chains and stand-alone chains. For example, a secured chain is a Rollup, and a stand-alone chain is a side chain.
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Secured chains will share the security of the attached platforms, whereas stand-alone chains need to have their protection. In the future, Polygon will support Zero-knowledge Rollup Optimistic Rollup and Validium Roll-ups.
It has seven Ethereum scaling solutions, of which three are live, three are under development, and one is on the testnet.
Polygon Proof of Stake is an Ethereum consistent sidechain secured by a set of PoS validators. It is the easiest way to scale Ethereum apps. Polygon PoS is considered the most popular scaling solution in web3, and it aids in achieving quick and cheap transactions.
Polygons Hermez is an open-source ZK-rollup devised for secure, low-cost, and usable token transfers on Ethereum wings. Practically it helps for mass transfer processing into single commerce.
Zero-knowledge proof technology is utilized to present and record the validity and accuracy of the rolled payments on the Ethereum blockchain. It helps to increase the throughput of the network.
Polygon Edge modules are the extensible frameworks that help develop private and public Ethereum compatible blockchains. Users can create customized blockchains with the help of Polygon Edge.
Other solutions under processing are Polygon Avail, which focuses on stand-alone blockchains, Polygon Nightfall, Polygon Miden, and Polygon Zero. It helps developers to build customized blockchains. Developers can use Ethereum tooling, libraries, and development tools.
What Makes Polygon Unique?
Polygon equips blockchain performance enhancement technologies. People can use Polygon services for their favorite EVM-compatible projects. Since Polygon products are EVM compatible, developers can convert dApp to Polygon easily. The Web 3.0 applications of Polygon allow MATIC holders to conduct transactions with maximum security and minimum time.
Polygon’s Zero Mission Updates
Polygon’s zero mission is an initiative to scale Ethereum using zero-knowledge proofs. As a part of the zero-knowledge proofs mission, it has developed the Plonky2 update, and it is considered a significant step towards Polygons Zero’s mission.
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Plonky 2 is a recursive Succinct Non-Interactive Argument of Knowledge that is much faster than existing technologies and compatible with Ethereum. A zero-knowledge SNARK is a cryptographic proof that allows processing information without revealing it.
SNARKS can verify arbitrary computation and other SNARKs. Importantly, recursive proofs are essential for scalability. Plonky2 combines FRI and PLONK to get the best of STARK to achieve future scalability missions for Ethereum.
The MATIC London Hard Fork and EIP-1559 Upgrade
Polygon was upgraded to London Hard Fork, or EIP-1559, on 18 Jan 2022. The network has implemented the EIP-1559 token burning mechanism. With the interactive dashboard of Polygon, MATIC enthusiasts can watch and participate in the process. The burning mechanism with EIP-1559 is as follows:
Base fee will get locked in the burn contract of Polygon whenever the user-pay transaction fee and a priority fee will be paid to validators. Users can start the burning process when MATIC is accumulated in the burn contract. It is a three-step process that begins in MATIC and ends in Ethereum. It is similar to the withdrawal transaction process, but the difference is that instead of crediting in a user account, tokens will be burned and eliminated from the total supply.
How is the Polygon Secured?
Polygon (MATIC) uses Proof of Stake consensus to secure the blockchain and create blocks. Users need to stake Polygon (MATIC) tokens to participate in the mechanism.
MATIC PoS consists of the block producer layer and a validator layer. As the name suggests, the block producer layer is intended to produce blocks, and the Heimdall layer or validator layer supports all validator nodes.
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Polygon PoS sidechains offer asset security using a decentralized proof of stake validators network and a Plasma bridging framework, and it also relies on Ethereum’s shared security. Other security models of Polygon are Plasma security and Hybrid security (Proof of Stake + Plasma).
What is Polygon Token (MATIC)?
MATIC is the native cryptocurrency that fuels the Polygon ecosystem. The initial coin offering of MATIC was on Binance, which ended in April 2019. MATIC is an ERC-20 token with an ICO price of 0.00263 USD.
It had an initial supply of 10,000,000,000, which was broken down as 41.9% for founders and projects, 22.8% for investors, 35.3% for pre-mined rewards and airdrops.
Main Features of MATIC Token
MATIC Polygon’s native token is the lifeblood of Polygon, and it mainly has three broader use cases.
- Transaction Fee: Any payment services in Polygon need a small amount of MATIC for settlement. This fee is for miners to verify the transactions.
- Network Security: The network works on Proof of Stake, and the validators need to stake MATIC tokens to reach a consensus.
- Governance: MATIC is the governance token of the Polygon network. MATIC holders can vote for changes in the Polygon ecosystem. But the governance mechanism has not been live on the platform.
Polygon: Pros & Cons
Pros
- Polygon handles transactions faster and saves Ethereum from its high transaction fees. Based on the website, an average of $140 million in gas was saved by Polygon. It is quick, secure, and developer-friendly.
- Polygon is compatible with major ERC standards. It has a polygon bridge that aids in transferring funds from any other blockchains to Polygon quickly. Fully EVM compatibility allows users to deploy smart contracts directly on Polygon.
- Polygon has a framework that allows developers to build their scaling solution instead of depending on the core team to build the scaling solution for them. On top of that, Polygon ensures greater flexibility and reduced cost.
- Along with all the facilities, Polygon stays strict on decentralization. Hence many of the Ethereum based dApps users believe Polygon is a better alternative to other platforms. DeFi platforms such as AAVE, SushiSwap, PolyMarket, and Curve adopted Polygon because of its advantages.
Cons
- Polygon is Ethereum dependent. Though Ethereum is all set to grow, dependency is a disadvantage factor as far as a crypto project is concerned.
- As of now, Polygon provides two solutions, MATIC Plasma and MATIC PoS. Other essential solutions, like ZK-RollUps, Polygon Avail, Polygon Zero, are not fully functional.
- Many scaling solutions are not yet live and are still under development, and there is no proper information about their launch.
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Polygon v/s Ethereum: Who is Better?
Polygon and Ethereum are different projects that cannot be compared under umbrella factors. It effectively supports Ethereum’s performance and gets the business advantage from that, and Polygon’s ability to handle scalability makes it a better choice for Ethereum’s scaling solution.
Polygon PoS has a transaction speed of around 65000 tx/sec, which is way better than Ethereum’s 15 tx/sec with approximately 10000x lower payment costs compared to Ethereum.
Ethereum remains the first name of Decentralized finance, and it is an umbrella solution for all financial and cryptocurrency project needs.
Many platforms rely on the Ethereum public blockchain. Thus, it has a vast customer base and cryptocurrency market capitalization compared to Polygon. Ethereum, the second-largest in the crypto market, is always a better option from an investment point of view.
Latest News on Polygon
Polygon is in the development stage and thrives on focusing on its mission. Recently the network has raised $450 million dollars through a private sale of the token for development purposes. Sequoia Capital India, Galaxy, SoftBank, Tiger, Republic Capital are the prominent investors. The money will be used for the web 3 development of the Polygon project.
Polygon developer ecosystem marked a milestone of 7000 dApps running on the network as of December. According to the news, this number has doubled within the last three months. Similarly, the number of decentralized application developers on the web3 platform has reached 8000.
Price History of Polygon
MATIC price started an upward trend from 2021, after a long sideways movement, and it marked a medium-term high at $2.45 in May 2021. 2021 was a remarkable year in the MATIC price history, as shown in the chart.
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MATIC tokens have made higher highs on the chart after the major falls of June and July 2021. The surge catapulted Polygon to catch the all-time high at $2.92 on 27 Dec 2021. It was a fast growth from $0.017 to $2.92 within a year by breaking all psychological resistances. Later, the MATIC price plunged to $1.5, and Polygon has delivered negative returns for the past few months.
Will MATIC Price Go Up?
Yes, MATIC’s price will go up, but investors cannot expect a surge in the near future as per our Polygon (MATIC) price prediction. The long-term forecast gives a positive outlook that the value of MATIC will gradually increase in the future.
Yearly Predictions
| Year | Minimum Price | Maximum Price |
| 2022 | $1.301 | $4.01 |
| 2023 | $2.680 | $5.23 |
| 2024 | $4.398 | $7.051 |
| 2025 | $6.042 | $8.821 |
| 2026 | $7.523 | $10.598 |
| 2027 | $9.53 | $10.932 |
| 2028 | $10.20 | $11.032 |
| 2029 | $10.20 | $12.01 |
| 2030 | $10.90 | $12.24 |
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Technical Analysis of Polygon
The cryptocurrency market suffers volatility and encounters a tug war between bulls and bears. MATIC today is trading at $1.45 with a 24-hour trading volume of $1,002,016,099. The current circulating supply is 7.54B MATIC, and the market cap is $10,947,631,590. The current price of MATIC is 50% less than the all-time high.
Polygon (MATIC) technical analysis shows that the coin has formed a head and shoulder pattern on the daily chart and bears drag MATIC to $1.4 levels. After taking support at $1.6, MATIC has shown a rising tendency and bounced back to $1.87 within a day. The price again dropped and is currently at $1.4 levels.
Immediate resistance is placed at $1.57; Polygon (MATIC) tested the resistance for the past few trading sessions and failed to jump over. Any raise from this resistance can take MATIC to $1.83. Major resistance is found at $2.038, and MATIC price has to cross this resistance to tackle the all-time high.
On the opposite side, nearby support is placed at $1.409. Any fall from this can pull the Polygon price to $1.217. It is an important support level from where MATIC bounced in the past, and there is a support level of $1.052.
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MATIC technical analysis using some prominent indicators shows MATIC price is below 200 EMA, 50 EMA & 20 EMA. Since the last 2 trading sessions, there has been a green candle formation, and if the price rise continues, 20 EMA will act as the first resistance level. The signal line has crossed the MACD line from upward. Currently, the MACD is showing a moderate bearish trend. RSI is placed at 39 and is trading flat, which is a moderate momentum indication.
To conclude, MATIC may try to recover since the overall market is gaining back momentum. MATIC is eyeing the next resistance level, and the price may hit $1.57 again. So traders can wait for a trend confirmation before initiating a trade.
Expert’s Opinion on Polygon
Wallet Investor: The Wallet Investor expects MATIC to reach $3 by the year-end and $8.3 by 2025. As per their Polygon (MATIC) price prediction, the coin can touch a $10 value by 2027.
Digital Coin Price: Polygon (MATIC) price prediction by Digital Coin Price shows that MATIC may extend to $2.48 by 2022 and $3.98 by 2025. Their price prognosis anticipates MATIC may not touch $10 before 2030.
GOV Capital: GOV Capital envisions a bullish price action for MATIC. It may reach $3.7 by 2022 and $8.5 by 2025. According to their Polygon (MATIC) price prediction, MATIC could touch $10 by 2026.
TradingBeasts: TradingBeasts predict MATIC can reach only $1.7 by the year-end and $2.66 by 2025. Their MATIC forecast is slightly bearish.
From the above prediction, different crypto experts have highly different opinions about the future price of MATIC.
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Polygon Price Prediction: 2022-2030
Polygon cryptocurrency has given a loss for many crypto traders last year and gave small returns in the previous six months. MATIC has experienced massive volatility with a huge loss in the previous month. Let us look at the Polygon (MATIC) price prediction to understand whether it is a profitable investment for the long term.
Polygon (MATIC) Price Predictions 2022
MATIC began the year at $2.57. Looking at the Polygon (MATIC) price prediction for the rest of the year, MATIC may call $1.85 by the year’s first quarter and $2.2 within the initial half. If further bullish momentum continues, MATIC may reach $2.658 by the third quarter and $3 by the year-end.
Polygon (MATIC) Price Prediction 2023
MATIC prediction indicates the price may open at $3.01, and slowly it may extend to $3.526 by March 2023. MATIC may hit $3.905 within six months. MATIC price predictions are bullish for the second half of the year. MATIC may move to $4.3 by the third quarter and $4.8 by Dec 2023.
Polygon (MATIC) Price Prediction 2024
MATIC expects a bullish beginning at $4.8, and it may soar to $5.238 in March 2024. Further Polygon (MATIC) price prediction indicates a slow increase to $5.6 by June 2024. The second half may begin at $5.7 and catch $6 by the third quarter, and bulls may extend the price to $6.5 before closing the year.
Polygon Price Prediction 2025
Polygon price prediction 2025 expects the price to begin at $6.52 on bulls’ hands. MATIC may surge to $6.9 in the first quarter. Further, MATIC may hit $7.3 within six months. The MATIC coin price prediction 2025 shows that the market may support MATIC to extend the price to $7.8 by the third quarter and $8.287 by the year-end.
Polygon Coin Price Prediction 2026
Polygon price prediction envisioned the price may start at $8.296 and is expected to spike to $8.605 by the third quarter. MATIC can touch $9 by the third quarter and $9.9 by the year-end.
Polygon (MATIC) Coin Prediction 2027
MATIC price predictions indicate the price may start at $9.90. MATIC is expected to gradually move to $10.01 by the third quarter and 10.14 within the year’s first half. Compared to previous years, the movement is slow, and Polygon is expected to hit $10.4 by Dec 2027, according to our MATIC price prediction.
Polygon Crypto Prediction 2028
Polygon price predictions suggest prices may begin at $10.5, and it may rise to $10.67 by March 2028 and $ 10.83 by the year-end as per our MATIC price prediction.
Polygon Price Predictions 2029
MATIC prediction 2029 indicates the price may commence at $10.5. MATIC price prediction expects a volatile movement, and the price may reach $10.67 by the third quarter and $10.99 by the first half. The second half is a bullish price prediction, and MATIC may close the year at $11.
Polygon (MATIC) Price Prediction 2030
Polygon (MATIC) price prediction indicates the price may trigger at $11 and expect a surge to $11.47 by the first half of the year. MATIC enthusiasts can invest money for an aim of $11.87 in Dec 2030.
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FAQs
Is Polygon (MATIC) a good investment?
Polygon forecast shows MATIC’s average price may reach $11.87 by 2030. Looking at the current level, it has long-term earning potential, and MATIC will be a good investment option. But digital coins always suffer high volatility; therefore, your own research is necessary before investing in crypto assets.
Where to buy Polygon?
MATIC is available on many virtual currency exchanges. Crypto experts and traders can buy Polygon from Coinbase, Binance, Huobi, Bitfinex, and other decentralized exchanges such as QuickSwap, Sushiswap, Uniswap.
How to buy Polygon?
Users can select any cryptocurrency exchange and complete the registration process and KYC. Once the signup process gets over, add funds to your account. Most cryptocurrency exchanges support all the payment methods such as debit/credit cards, internet banking, or link your wallets. After that, search MATIC on the search bar, tap on the buy button and add MATIC to your investment portfolio.
Can MATIC tokens reach $10?
Our MATIC coin forecast shows that it will reach $10 by 2027.
How much will Polygon be worth in 2025?
Our Polygon crypto forecast intimates that MATIC may reach an average price of $8.2 by 2025.
What is MATIC used for?
MATIC is a utility token of the Polygon network for transactionS, fee payment, and staking.
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