- Crypto analysts Lark Davis thinks a $10 price for Polygon (MATIC) is inevitable by the end of 2022.
- He highlights various developments, partnerships, and milestones the network has achieved as the reason for this.
The wider crypto market has seen even bigger losses in the past week, and Polygon (MATIC), Ethereum’s layer-two solution has been no exception. MATIC has cut 17.3 percent value in a week, to now trade at around $2.11. However, crypto analyst Lark Davis predicts a $10 price for the coin by year’s end. Here’s why:
Last year, Polygon acquired two major zk-rollup scaling solutions, namely: Hermez network in August and Mir blockchain in December. These have increased utility for its cross-chain users, in addition to providing more solutions than those hosted on Ethereum. In total, the network had 6 solutions released over 2021, including Nightfall, which was built in collaboration with global account firm EY.
These technological developments, among others, have brought in $500 million in inflows for Polygon in just the past week. The network has also outperformed all other blockchain bridges with an overall $28 billion inflows, according to a thread of tweets by Spencer Noon.
Davis points out the growth in MATIC’s value over last year, saying the same may reflect this year, due to the network’s aggressiveness. In Jan. 2021, MATIC was valued at just about $0.02. By the end of that year, its price had risen to a little over $2, or a surge of over 9,000 percent. Polygon, also marked several other significant milestones as highlighted by the co-founder Mihailo Bjelic:
-6 new solutions (SDK, Avail, Hermes, Nightfall, Miden, Zero)
-Top Web3 ames (Uniswap, Aave, OpenSea…)
-Big brands (D&G, NFL, Macy’s…)”
Polygon (MATIC) headed To $10
Even more, Polygon has seen way better adoption than Ethereum, according to statistics of new users:
Of the 129M accounts that have used Polygon over the last 8 months, only 15 percent have addresses on Ethereum. Moreover, only 0.85 percent of $ETH addresses are on $MATIC — proof it’s onboarding net new users to Web 3.
In Dec. 2021 alone, Polygon boasted of welcoming 7,200 new developers to its ecosystem. And in the last week of that month, the network’s developers deployed 1.8 million smart contracts compared to the 105K for Ethereum.
On top of that, Polygon has shown itself strongly in the worlds of NFTs and DeFi. In Dec. 2021 alone, the network sold 1.99M NFTs, compared to just 50K in July, per data from Dune Analytics. As 2021 drew to a close, Polygon pointed out its has:
-Over 10,000 new NFT collections
-15 billion total assets minted
-80+ active games
-And $2.5 billion in NFT trading volumes.
The world’s biggest decentralized exchange, Uniswap, went live on Polygon in December. Polygon’s Quickswap has also demonstrated wide use, with 226K users over December alone.
All these developments are the reason why high-profile and promising projects are launching on Polygon. Among them are DeFi protocol Aave, the world’s largest NFT marketplace OpenSea, and the Sandbox metaverse platform. Lastly, Davis talked of the EIP-1559 upgrade that is coming to Polygon via the Mumbai testnet. The upgrade will bring with it all the benefits it has conferred Ethereum, including token burning.