Polygon MATIC is projected to surge ahead of the ETH merge next month. Despite MATIC being down 50% since March, the Polygon token is predicted to surge along with Ethereum ahead of the ETH Merge in September.
Rough Year For MATIC
Recently, a popular crypto analyst from the Coin Bureau YouTube channel uploaded a video predicting the future of both Polygon as well as Polygon’s MATIC token in the near future.
The analyst claims that despite many bullish project reveals this past year, including joining Disney’s Accelerator Program as well as being a supported blockchain for Meta’s new NFT features, the MATIC token is struggling to recover after falling by 50% in this year’s bear market.
“The MATIC token has been hit hard by the crypto bear market and is down about 50%,” the analyst says in his video, “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.”
MATIC’s Predicted Rise
Despite this, the Coin Bureau host claimed that he predicted Ethereum’s upcoming merge in September to have a positive effect on MATIC.
One of the most promising Ethereum Layer 2s is Polygon and since our last vid, the project has been through a wave of adoption. Could this translate into $MATIC gains and are there any risks ahead? All covered today. Enjoy!https://t.co/2EXLGoz3ij
— Coin Bureau (@coinbureau) August 4, 2022
With Polygon being one of Ethereum’s most important Layer 2 scaling solution, it will also reap the benefits from ETH’s merge, including the scaling solutions becoming more environmentally friendly.
“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.“
Aside from this, one of the biggest concerns that people in the community had concerning Ethereum 2.0 was whether the merge would potentially “kill Polygon”.
To this, the Coin Bureau host argues that even after the Merge, the Polygon scaling solutions will still be needed because the merge itself “won’t affect Ethereum’s transaction speeds or fees by all that much, if at all,” therefore Polygon will still be needed even after the Merge.
In the same video, the analyst predicts that MATIC could possibly rally to as high as $1.50 leading up to the Merge in mid-september. He claims this prediction is “consistent with ETH’s own price action which is forecasting up to a 2x increase between now and then.“