As a result of a major rise in price followed by a panic sell-off of its native coin Matic due to a tweet, the Matic Network has been in the spotlight since October last year. Meanwhile, it fluctuated in value causing trust issues and a lack of clarity among investors to ask if the Matic cryptocurrency is a good investment in the period from 2021-2022.
Establishing Firm Grounds On The Market
Ethereum developers are now able to build and test their applications easily due to the Polygon MATIC platform releasing a new product and development that transformed and eased many processes. As a result of this, the coin saw huge gains. Its value rose more than 340% between October and the start of December. With useful, interesting, accessible, and easy to implement solutions the new product was seen as a serious investing opportunity.
Samuel JJ Gosling, the founder of Validity Crypto, initiated a tsunami of drama circulated with its tweet about the platform making a personal profit by dumping its tokens on the market and its customers.
Virally, a tweet from Samuel JJ Gosling, the founder of Validity Crypto, created a buzz in the market and the Matic coin’s upward trend saw a dead end.
In general, Gosling condemned the project founders for dumping their tokens on the market for personal profit. Although he retweeted to apologize: “deeply apologize for providing an inaccurate claim nothing changed, because the downfall had already started.
Consequently, the buzz in the market resulted in the MATIC coin losing 75% of its value on the same day. Hitting a 2-month low in a few days it had a hard time recovering its price.
Matic’s COO, Sandeep Narwal, marked this as an “evident manipulation” in response. The founder of Binance Changpeng Zhao supported and defended the team behind the Matic project.
It didn’t matter whether Gosling’s allegations were untrue, the MATIC coin value dropped substantially on the market. Retrospectively looking, in August 2020, it traded around the $0.014 mark, which is considerably lower as compared to the all-time high of $2.62 set on May 18, 2021.
After all the obstacles, the currency has slowly regained momentum upwards, with the recent one reaching the price of a token of 1.420 USDT as of September 2021. With the SMA line’s lack of support, the price of the Matic token has average momentum. MACD line is already crossed over the signal line. If this tendency is what to expect in the future, the token shall be trading laterally.
In meantime, with all the ups and downs, hurdles, and obstacles the MATIC coin has reached a price for the token that is 1.420 USDT as of September 2021.
Investors consider the Matic coin as maybe not to be the best investment currently as they traditionally seek clarity when considering assets, and right now, there are just a lot of unanswered questions.
But technically speaking, MATIC had its time earlier this year and with the new developments recently established, scalability will not be such an issue and will significantly improve Ethereum’s scalability in the long run.
Moreover, Ethereum will undergo a Triple Halving, i.e. 50% * 50% * 50% = 12.5%, a 87.5% reduction in issuance equivalent to 3 consecutive Bitcoin halving events.
EIP-1559 was passed on August 4th, causing continuous burnout of 70% of the transaction fees in Ethereum.
Expectedly, occurrences like this will put Ethereum in the center stage and we may even see Ethereum overturn Bitcoin as the no 1 cryptocurrency.
MATIC is currently at a $6B market cap. It is not so unlikely to reach $120B and give a 20x return in the best case scenario which is extremely high. A more probable scenario would be a 10x return for this period.
ETH THP(Ethereum Triple Halving Project) FUND is a better alternative: Investors are in the position to gain exposure to the digital currency asset class while providing them a safe space on the upside of the crypto economy, via the powerfully equipped ETH triple Halving rebalancing technologies and ‘store of value’ strategy algorithm for the different available investment tiers.
No matter the ups and downs, Polygon has left a mark and surely it will remain an important keystone in the Ethereum ecosystem for many years to come.
The only uncertain thing is how big of a role it will play once scalability isn’t an issue for Ethereum anymore, especially with Ethereum 2.0.