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A popular crypto analyst says blockchain scaling solution Polygon (MATIC) is poised to rise ahead of the highly anticipated Ethereum (ETH) Merger next month.
In a new video modernizethe pseudonymous Coin Bureau host known as Guy says that MATIC is struggling despite seeing a lot of upside in recent months.
“The MATIC token has been hit hard by the crypto market and is down about 50% since I last covered the project in March, although it is starting to show some signs of recovery.
In addition to the cryptocurrency market, the MATIC token has been suppressed by selling pressure, as indicated by the significant increase in its circulating supply in recent months. Since March, MATIC’s supply has increased by approximately 340 million.”
According to the analyst, MATIC looks set to rise despite its struggles as Ethereum updates from a proof-of-work mechanism to a proof-of-stake mechanism. Guy says Polygon will benefit from the switch as its scaling solutions become more environmentally friendly.
“MATIC is likely to continue its short-term rally regardless of these fundamentals and this is due to 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 rise as much as $1.50 in the lead up to the Ethereum merge in mid-September. This is in line with ETH’s own price action, which predicts an increase of up to 2x between now and then.
This also makes sense because MATIC will almost certainly benefit from the merger as it will make scaling solutions more environmentally friendly by extension. This will increase Polygon’s already high exposure to institutional investors…
Additionally, Polygon’s scaling solutions will still be needed after the Merger because the Merger will not affect Ethereum transaction speeds or fees as much, if at all.”
MATIC is changing hands for $0.919 at the time of writing, a gain of 1.7% on the day.
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Featured image: Shutterstock/Mia Stendal
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