Cryptocurrency prices are moving quickly. Ethereum (ETH) is shooting higher in a renewed bull market. DeFi applications offering token swaps, liquidity mining and staking for interest are boosting participation in the space. And as the technologies underpinning smart contract platforms continue to develop, their associated tokens promise incredible gains for investors.
While holders of ETH are surely happy with recent price increases, users of the Ethereum platform are literally paying the price for the blockchain’s success — in gas! As ETH rises in fiat value, network congestion becomes a headache for traders. Gas fees skyrocket. Transactions slow. And a growing segment of crypto enthusiasts find themselves priced out of the dApps built on top of the world’s 2nd largest blockchain.
Due to the inherent problems with Ethereum’s low throughput and high fees, savvy investors are increasingly looking for alternatives in the altcoin market. Layer 2 solutions like Polygon (MATIC) have made terrific headway with traders in the space.
But what is Polygon, exactly? And what kind of returns can be expected from a reasonable investment in the altcoin? With huge gains being realized everyday in the crypto market, Investors are asking just one question, how high can Polygon go?
What is Polygon?
At its most basic level, Polygon is a layer 2 solution for dApps built on Ethereum. Polygon allows traders to access, swap, exchange and stake ETH and ERC-20 tokens without the associated congestion and fees that plague the original smart contract platform.
With a proof of stake (PoS) bridge available to traders, Polygon seamlessly transfers funds between the Ethereum and Matic networks. Using the token, MATIC, traders can explore the dApps they’ve come to love on Ethereum while paying significantly less for the associated transaction fees.
But Polygon is more than a layer 2 solution. Ultimately, the company represents Ethereum’s “internet of blockchains.” Offering a framework for building Ethereum compatible blockchains, Polygon supports a multichain Ethereum ecosystem.
Polygon Market Position
Polygon is ranked No. 19 by market cap in an expanding list of altcoins. Trading near $1.46 at the time of writing, this leader in the layer 2 space has grown 10%, along with ETH, in the past week. As a top-tier altcoin with a usable platform, Polygon will likely attract an influx of traders, who after purchasing ETH, will find themselves unable to use it on Ethereum because of soaring gas fees.
With a circulating supply of more than 6.5 billion coins, Polygon now finds itself nearing a $10 billion market cap. While there is still room to run, investors may be more interested in how the company will maneuver among a newer class of multichain competitors, like Cosmos (ATOM).
PrimeXBT Analyst Kim Chua’s Bull Case for Polygon
PrimeXBT analyst Kim Chua is an institutional trading specialist. While known far and wide for her successful trading strategies in traditional markets, Kim actively follows cryptocurrencies in her role with PrimeXBT. And what she sees is extremely bullish for Polygon.
According to Kim, MATIC should be trading at $2.78 — at a minimum. Kim says Polygon suffers from a low valuation multiple when compared to other tokens in the space. And if she’s right, Polygon could be looking at incredible gains in the near term.
Trading Beasts’ Bear Case for Polygon
Trading Beasts, a leading forex and crypto educational portal has forecast long-term expectations for the MATIC token. While generally bullish in the near-term, the analysts behind the Trading Beasts portal believe the token will settle after reaching $1.83 by the end of October 2021. According to the education portal’s prognosticators, MATIC won’t be able to hit $2 until sometime after March 2022.
Where to Buy Polygon
If you’ve made it this far, you probably want to know where you can find the token behind Polygon’s multichain scaling solution. Lucky for you, MATIC is widely available on most top exchanges.
When deciding on a trading platform that’s right for you, it pays to consider the differences among your options. With state-of-the-art security and feature-rich trading environments, your best options for buying MATIC include Coinbase, Gemini, Voyager and Crypto.com.
Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi swap, DeFi Wallet, DeFi Earn, Crypto.com Price, staking, crypto lending, and many other services. What really sets them apart, however, is the combination of super low fees and incredibly generous rewards programs for their users.
- Traders who want access to a secure, low-cost cryptocurrency exchange
- Passive investors who want to earn interest on their balance without frequent trading
- Mobile investors who prefer to handle all their crypto needs via their phone or tablet
- Low fees
- High security
- One-stop shop for all your crypto needs (wallet, trading, spending, and more)
- Lots of ways to earn interest, rewards, and rebates
- Low privacy
- Customer service response time could be improved
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
- Higher fees than competitors
Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users.
When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments.
Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike.
- Cryptocurrency investors looking for a wide selection of supported projects.
- Investors who prefer mobile trading.
- Anyone interested in earning interest on their crypto investments.
- Simple, straightforward and intuitive mobile platform
- Wealth of investment opportunities
- Allows users to earn interest on select crypto investments
- Only available for mobile users — no desktop platform
- Limited routes to contact customer service team
eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features
- U.S. based cryptocurrency traders
- Social and copy traders
- Simple user interface
- Community engagement and following other traders
- 25 cryptocurrencies
- Expansive network of social trading features
- Large client base for new traders to imitate
- U.S. traders can only buy cryptocurrency
How Long Will it Take for Polygon to Reach $5?
Market participation is increasing. As Ethereum rises in price, its problems — network congestion and gas fees — magnify. Altcoins with smart contract platforms and layer 2 solutions like Polygon lie front and center before an increasingly frustrated investor class. And as Ethereum continues to grow, so will the value of its compatible blockchains. As such, it isn’t hard to imagine this coin making strides towards a brand new all-time high in the coming months and years.
But riding the coattails of Ethereum’s popularity may not be enough to justify the $30 billion market cap that would come with a theoretical $5 coin. To reach these heights, MATIC will need to prove itself against a growing field of competitors in an uncertain future.
Where to Store Polygon Safely
If you’ve decided to purchase MATIC, you’ll want to store your crypto safely in a wallet off of your chosen exchange. You’ll find both software and hardware wallets widely available, depending on your needs.
While software wallets offer mobile connectivity and access to dApps, hardware wallets keep your assets disconnected from the internet and represent the most secure way to hold cryptocurrencies. Whichever you choose, the selections here represent trusted industry standards.
Best hardware wallet: Ledger
Ledger is hands-down the most secure way to store your cryptocurrencies — MATIC included. By storing your private keys on the device itself, ledger maintains a safe distance between your assets and easily-hacked devices like your smartphone.
When security is critical, Ledger’s state-of-the-art cold storage device can’t be beat. And with the Ledger Live app, you can manage your assets safely and with ease.
Best software wallet: ZenGo
With mind-bending simplicity, ZenGo offers the ultimate software wallet for storing all your crypto. Using facial biometrics, ZenGo has done away with the pass-phrases and private keys of yesteryear. The fastest and most secure software wallet on the market, ZenGo offers peace of mind, with no extra fees.
Shard Labs has created a liquid staking protocol for Polygon. Known as Lido, users can now stake MATIC and receive stMATIC while continuing to earn staking rewards.
Current Crypto Prices
There has been a lot of action in the market lately as Bitcoin (BTC) joins the altcoin market in its latest rally. With a total coin market capitalization near $2.25 trillion, a new all-time high looks imminent.
Bitcoin dominance sits at 41.7% and continues to fall despite recent gains. With Ethereum now leading the market, altcoins have exploded in the face of Bitcoin’s stagnant price movements. As Ethereum’s own dominance grows, Polygon has a good chance of making gains alongside the world’s No. 2 cryptocurrency.
So, Is Polygon (MATIC) a Good Investment?
Polygon’s path is inextricably linked with Ethereum’s, which may be a good or bad thing depending on your investment strategy.
As smart contract platforms like Cardano (ADA) and Solana (SOL) develop, Ethereum becomes less important to certain traders. Should these projects continue to eat at Ethereum’s market share, it may be necessary to temper our expectations for Polygon. Besides, when Ethereum completes its upgrade to Eth2, the need for layer 2 workarounds may disappear altogether.
But despite an unclear future, Polygon has a usable layer 2 solution to Ethereum’s current congestion and associated fees. This puts Polygon and its token, MATIC, front and center before an emerging investor class.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
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