Earlier this week, the altcoin market felt the influence of the armed conflict between Russia and Ukraine. Polygon’s MATIC, which started the week conveniently at $1.866, fell to $1.36, losing nearly 20% of its value. Although the coin has gotten back on its feet soon after the fall, it is still a long way from reaching its previous position. This dive by MATIC greatly surprised the crypto space as the coin was thought to be immune to real-world developments.
Polygon was developed by Jayant Kanani, Sandeep Naiwal, and Anurag Arjun in 2017 to provide scaling solutions for Ethereum. Formerly known as Matic, Polygon was rebranded in 2021 to keep up with the pace at which the industry is growing. In less than a year, MATIC has started to get the due attention it deserved from investors across blockchains. Polygon is currently leading the market as far as Ethereum scalability solutions go, and MATIC is often referred to as an Ethereum Killer despite having been built on the very chain. As reported by this comprehensive and unbiased Polygon price prediction, MATIC could easily reach $10 in just five years.
However, this downturn comes as a surprise for experts because they believed MATIC was isolated from the other altcoins. Still, the quick recovery by the token would be a key factor in determining the value of the coin as a viable investment option. This potential of MATIC is being viewed through the lens of long-term profit by many investors. The zero-knowledge rollups feature is expected to help with scalability, utility, and demand for the coin in the years to come.
MATIC’s quick recovery of more than 5% in 24 hours comes as proof of the short-term capabilities of the token. Moreover, the coin has a comparatively good number in the index pairing with the USD. This could imply an upward price action from the coin in the next few weeks as well. The demand for MATIC, too, looks good as the coin is reported to have been slightly oversold.
These aspects point to a hike in the price that could bring the coin to its previous $1.8. Continuing this trajectory, it might soar close to 3 dollars by the end of 2022. This price movement will be further influenced by the growth of the blockchain as an Ethereum scaling solution. The Polygon network already provides scaling to nearly 7000 dApps. Polygon’s arsenal is highly equipped with 52,000 smart contract creators and more than 100 million addresses to keep pushing its growth even in the future.