polygon

The price of Polygon’s MATIC has been appreciating gradually over the course of the last month, and is now up by 54% over the last 30 days.

There are many analysts who believe that this premier Ethereum scaling solution will be able to capture a lot more value in the coming years, particularly when one considers the plethora of high profile partners that Polygon has managed to onboard in the last few months.

Polygon’s technology is such that users are able to pay a fraction of what they would otherwise have to on Ethereum’s layer one chain, meaning that the blockchain is able to process far more transactions and even host dApps that wouldn’t otherwise be logistically feasible.

However, there are some limitations to this: last year the Sunflower Farmers play to earn game required so many micro transactions that the blockchain came to a complete halt.

Could MATIC reach $10 in February 2023?

MATIC will almost certainly not reach $10 in February 2023, given that this would require 7x price appreciation in under two weeks, and the market cap is already in the tens of billions.

Despite the partners that Polygon has managed to establish for their blockchain, the markets conditions are not nearly fertile enough at this point to justify such an explosion in price.

Moreover, there are several issues with the Polygon blockchain that are yet to be resolved, such as the fact that the Polygon bridge is controlled by a 5/8 multi sig, exposing investors to a high degree of risk.

It isn’t rational to expect that institutions would disproportionately allocate to such a centralised blockchain that has such a high degree of risk, regardless of the scaling potential in the short term.

Whilst Polygon may prove to be an interesting investment for the long term, particularly if they are able to resolve their bridge issues (which the Polygon CEO is currently working on).

However, those hoping for a 7x in 10 days will be disappointed.

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