Economics Online

Is Polygon (MATIC) Worth Considering as a Crypto Investment Included in Your Portfolio?

EconomicsOnline -

Crypto investors are always on the quest for the next big thing in the market and the main question that needs to be answered today - is Polygon Matic the next wonder of the crypto world? Designed to address Ethereum’s scalability issues leading to slower transactions accompanied by higher fees, Polygon's main goal is to handle transactions off-chain and then returning the processed data back to Ethereum. Let’s take a look over its advantages and possible setbacks and see if investing in Polygon (MATIC) makes sense. 

MATIC - not your ordinary token

MATIC the native token of Polygon is a popular Altcoin, and it has multiple purposes:

  • Transaction Fees: The main use of MATIC is to pay small fees for transactions occurring on Polygon. 
  • Staking: Users can lock down their MATIC tokens, to support network security. By doing this, they become validators who ensure that transactions are legitimate, earning rewards in the form of additional MATIC.
  • Powering Decentralized Applications (dApps): Many dApps are blockchain-based and operate on Polygon. These apps often require MATIC for in-app transactions, such as buying items or having access over premium features. For example, buying in-game assets or attending special events in game, requires the use of MATIC.

Polygon’s Price Future Predictions

Polygon’s roadmap is full of positive performance recently and future potential upgrades, which creates an optimistic market opinion over its future prospects. Even though some investors remain cautious, statistics is encouraging investing in Polygon, as the token could experience stable growth and some potential gains down the line. By the end of 2024 the MATIC’s price is predicted to reach $1.83, with even more optimistic expectations for the timeframe 2025-2030 with the price potentially reaching $8.30 by 2030. So to give you an answer over the question is Polygon worth investing in, here are the benefits, risks and possible price fluctuation factors:

What Drives MATIC’s Price?

Forming MATIC’s price is a complex process that is influenced by several factors such as:

  • The State of the Crypto Market: No different than any other cryptocurrency, MATIC’s value is closely related to the overall market state. When the leading digital currencies such as Bitcoin and Ethereum are performing well, other cryptocurrencies are adopting that trend and are experiencing growth. 
  • Regulatory Framework: Regulatory changes highly influence its price, if the updates are positive the price rises, and vice versa. 
  • Polygon’s Development: The more work is put into Polygon, the more attractive it becomes for developers and users, which leads to higher demand. On the other hand if Polygon lacks innovation compared to its competitors, MATIC’s price crashes.
  • Adoption and Usage: The broader use of dApps on the Polygon, is another key factor that shapes the MATIC price. The demand for MATIC is closely related to the demand for these apps, and their relationship is directly proportional.
  • Partnerships: Being in partnerships with well known companies or organizations, promotes Polygon, attracting more traffic that leads the way to higher MATIC price.

Investing in MATIC

Strengths:

  • Based on historical data, high potential for big returns
  • Stable development team and dedicated community
  • More common use in decentralized finance (DeFi) and NFTs

Weaknesses:

  • High market fluctuations, typical for cryptocurrencies
  • Highly dependant on Ethereum’s success
  • Facing intense competition from other Layer-2 scaling solutions

Considering both the strengths and weaknesses of Polygon, you might be thinking about adding it to your portfolio. If so, check out this in-depth guide on Cryptomaniaks to find the best places to purchase Matic. Even though investing in cryptocurrency is a risky business, regardless of your experience, the main advice that might come handy for a healthy investment strategy is to follow the rule for a diverse portfolio. 

The Future of Polygon (MATIC) and Its Use Cases

Polygon’s future seems bright, especially with helping out Ethereum’s scalability issues, but that’s not all, there are other areas where Polygon is outstanding as well: 

  • Zero-Knowledge (ZK) Rollups: These rollups consolidate many transactions and process them off-chain, resulting in faster speeds and lower costs. Polygon is focused on developing this technology which leads to greater results in the near future.
  • Gaming Applications: Polygon provides the perfect gaming experience, accompanied by low costs and no transaction delays. The ability to steer through large data is quite important for professional gamers that want to make sure the game runs smoothly.
  • Making NFTs More Accessible: Non-Fungible Tokens (NFTs) have become increasingly popular, and Polygon is making it easier for people to engage with NFTs by offering lower transaction fees and expanding its marketplace.

Our Verdict

Polygon is the perfect investment opportunity for tech savvy investors and holds serious potential. Before investing in it take a look over its future projects, recent price fluctuations and do a short research over its historical data. Nothing beats a diversified portfolio so make sure to invest in different assets at the same time. So to give you an answer to the question is Polygon a good investment, our answer is yes Polygon is a great asset to have in your portfolio, but do your investing rationally taking in consideration the volatile nature of cryptocurrencies, and do not put all of your eggs in one basket.