A popular crypto analyst says that blockchain scaling solution Polygon (MATIC) is primed to rally ahead of Ethereum’s (ETH) much-anticipated Merge next month.
In a new video update, the pseudonymous host of Coin Bureau known as Guy says that MATIC is struggling despite seeing many bullish developments over the course of the past few months.
“The MATIC token has been hit hard by the crypto bear market and is down about 50% since I last covered the project in March, though it is starting to show some signs of recovery.
Besides the crypto bear market, the MATIC token has been suppressed by sell pressure as indicated by the sizable increase in its circulating supply over the last few months. Since March, MATIC’s supply has increased by about 340 million.”
According to the analyst, MATIC looks poised to surge despite its struggles as Ethereum updates from a proof-of-work mechanism to a proof-of-stake one. Guy says that Polygon will benefit from the switch as its scaling solutions will become more eco-friendly.
“MATIC is likely to continue its short-term rally regardless of these fundamentals and that’s because of Ethereum’s upcoming transition to a proof of stake, which is taking tokens like MATIC on a mission to the moon.
Based on admittley amateur technical analysis, MATIC could rally to as high as $1.50 in the lead up to Ethereum’s Merge in mid-September. This is consistent with ETH’s own price action which is forecasting up to a 2x increase between now and then.
This also makes sense because MATIC will almost certainly benefit from the Merge as it will make its scaling solutions more environmentally friendly by extension. This will increase Polygon’s already high appeal to institutional investors…
Moreover, Polygon scaling solutions will still be needed post-Merge because the Merge won’t affect Ethereum’s transaction speeds or fees by all that much, if at all.”
MATIC is changing hands for $0.919 at time of writing, a 1.7% gain on the day.
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Featured Image: Shutterstock/Mia Stendal
Source: https://dailyhodl.com/2022/08/07/polygon-matic-likely-to-surge-ahead-of-ethereum-merge-next-month-says-coin-bureau-host/
