- Most cryptos are subdued right now, and Polygon too has lost value so far in 2022
- The backers of Ethereum scaling protocol, Polygon, had a pretty good year in 2021
- Polygon 2025 price would depend on how it justifies its utility amid growing competition
The recent decline in prices of major cryptocurrencies has highlighted the volatility that ails the sector. Regardless of whether any crypto has a billion-dollar market cap or only a few million-dollar, price can fluctuate in any direction.
So far in 2022, all top crypto assets by market cap have lost value. Polygon, one of the top 20 right now in the CoinMarketCap listing, is trading in red as well.
Will Polygon rebound? Let’s find out
Polygon price in 2021
Polygon’s MATIC token had a great year in 2021. It started with a price of under US$0.10 but soared to nearly US$2.5 by mid-May. Thereafter, price manifested volatility amid a crash that had gripped the wider crypto market. Polygon price fell to nearly US$0.70 by mid-July.
Despite all swings, Polygon ended 2021 at US$2.5. Backers were in for whopping 1-year returns.
Polygon use case
Polygon is an Ethereum scaling service provider. It touts its ability in making Ethereum a ‘multi-chain’ network as its biggest USP.
Polygon counts Binance and Coinbase, two of the leading crypto exchanges, as its backers. The protocol also claims to be used by over 3,000 decentralized apps (DApps). Ethereum high gas fee and limitations in scaling are the two problems that Polygon developers claim to provide solution for.
Polygon in 2022
From US$2.5 to US$1.4 as of now, Polygon’s MATIC crypto has lost immensely so far.
The primary reason could be the wider bearish trend that has gripped the market due to multiple negative sentiments. First, the Fed may soon hike rates and so might all other major central banks. This has left investors with less appetite for riskier assets like equities and cryptocurrencies. Second, Bitcoin is like the pulse of the crypto market, and a slide in BTC usually triggers a decline in most other cryptos.
The secondary reason may be that other blockchain networks are fast gaining traction. Solana was a top performer last year, and it offers DeFi solutions just like Ethereum. Cardano and Binance Smart Chain (BSC) are two leading blockchain network service providers competing with Ethereum’s dominance in this field. This might be behind Polygon’s MATIC token’s subdued demand right now.
Data provided by CoinMarketCap.com
Polygon price prediction 2025
2025 could be time by when dust settles in the crypto universe. First, the market may have finalized the best blockchain network by then. Either Ethereum or any other network may rule in DeFi and NFTs.
Polygon’s major role is in Ethereum scaling. Ethereum remains the second strongest crypto asset after Bitcoin. By this measure, if Polygon keeps adding to Ethereum network’s utility and deployment, the MATIC token may have a fair chance to rise in value.
If Solana can surge from under US$2 to US$170 in full year 2021, Polygon may demonstrate a similar trend by 2025. This may mean that by 2025, Polygon may touch at least US$100.
Predicting the price of any cryptocurrency, large or small cap, is complex. Polygon may reach US$100, but for this to happen, it would have to demonstrate its utility in Ethereum scaling.