Polygon MATIC Eventual Rise To $7 – What Will Fuel It?

MATIC token – the native asset of the recently rebranded Polygon L2 solution for Ethereum has seen another 12.9% rise in the past 24 hours. Now a top 20 crypto-asset by market capitalization – MATIC has provided over 300% gains over the past month. The stellar performance of the token can be attributed to a growing ecosystem, long list of partnerships with major crypto protocols – specially Aave, which is allowing for more assets to be brought into the ecosystem and thus higher usage/adoption of the protocol, positively impacting MATIC price. But, where can it go from here?

Polygon MATIC - CoinGecko
Polygon (MATIC) – CoinGecko

Binance Smart Chain (BSC) comes to mind, using the Binance Coin (BNB) as the reserve token of the ecosystem. It has benefited highly from Ethereum’s scalability issues with higher fees and processing times. The BNB token rose from $24 since the start of the year to reach a price of ~$567 currently – an astronomical rise of 2240%! BSC has gathered a major part of the market-share by catering to the average retail users, who are priced out of the Ethereum mainnet.

BSC has seen Ethereum migrated and copied DeFi projects, because of EVM compatibility and some indigenous ones too, allowing it to massively expand the ecosystem and generate heavy usage. However, it’s not decentralized and relies on Proof of Authority (POS) mechanism with selected validators, a strict no-no for more serious projects and conscious users. That’s where Polygon’s MATIC can really shine. It’s actually a hybrid L2, deriving security from the parent Ethereum blockchain.

Polygon MATIC Ecosystem

Polygon MATIC is seeing the same hurried on-boarding of projects like BSC, escaping Ethereum high fees and settlement times, but also unwilling to comprise on security and decentralization. So far, it has had dozens of projects from diverse categories of DeFi, NFT, DAO, gaming, B2B, infrastructure etc. The prominent ones are Aave, SushiSwap, Curve, Augur, QuickSwap, Kleros, Golen, Injective Protocol etc.

It was recently claimed that Polygon MATIC was on-boarding at least project every day and the future does appear to be bright for this fast developing ecosystem. Seeing all of these things, there’s a high possibility that Polygon MATIC will reach at the very least half of the Binance Smart Chain. At such point, assuming that the MATIC circulating supply (currently 6.12B out of 10B total) doesn’t change and that it would be able to reach half marketcap of Binance Smart Chain currently $87B – $43.5B, the price of MATIC would be $7.7.

If it’s able to attain the same marketcap as Binance Smart Chain, MATIC price can rise as higher as $14+ per token. There is high confidence that MATIC price is slated for higher appreciation in the future, seeing the mass development happening on it and the fact that it’s currently the most operational / happening Ethereum L2 solution, for most other L2 project are still under development or in testing stage.

polygon matic
polygon matic© Cryptoticker

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