The Poggon (MATIC) price has been increasing since the token rebranded to POL on September 13. The fresh start has given the project a new boost in its price action, but not before a quick sell-off on the launch day. This is because the new POL tokenomics show the token has an infinite supply, whereas MATIC had a 10 billion total supply. Nevertheless, POL has recovered from this initial shock, and the price found a bottom around $0.37 before it began to surge.
5 Reasons to be Bullish on Polygon (MATIC) Price
Here’s a closer look at why MATIC price is poised for significant growth as the crypto market booms:
1. Growing Network
The Polygon network is among the fastest-growing networks on the blockchain. According to Santiment, it grew by 1,019% over the last 30 days, making it the top crypto network with the highest growth, followed closely by WETH on the same network.
The top networks in crypto by network growth over the past 30 days include:
1) Polygon Ecosystem $POL (+1,019% More New Addresses)
2) WETH (On Polygon) $WETH (+263%)
3) LayerZero (On Optimism) $ZRO (+254%)
4) LayerZero (On Arbitrum) $ZRO (+219%) pic.twitter.com/lSjlc8kzIF
— tanyel (@dalya_tanyel) September 27, 2024
An increase in network growth is a positive indicator, which means more users are joining and using the network, which can drive demand for the underlying crypto asset. More users typically lead to higher transaction volumes, positively impacting the network’s value and utility.
2. Polygon zkEVM Narrative
Polygon is the only known blockchain working overtime to perfect the zkEVM technology, a layer 2 solution that will enable any network to function like the Ethereum Virtual Machine (EVM) with fast finality through off-chain transaction computations.
This would be phase 1 for upgrading PoS to a full, ZK-powered L2.
Core devs at Polygon Labs have spent years focusing on tech to scale Ethereum, starting with PoS. All this R&D has led to two conclusions: (1) ZK tech is the best way to achieve verifiable offchain computation and…
— Polygon | Aggregated (@0xPolygon) September 25, 2024
This technology will make the Polygon network faster than Ethereum, attracting investors and users and increasing its price.
While these two are the main reasons why MATIC price could shoot up, here are three more reasons:
3. POL Is Undervalued At Current Price of $0.43
The current POL price of $0.43 presents a potentially lucrative investment opportunity. Given its strong fundamentals and growth prospects, investors might find this an attractive entry point. The relatively low price compared to its potential makes it a compelling option for investors looking for promising crypto assets
The 365-day Market Value to Realized Value (MVRV) ratio is undervalued at -34.84%, according to Santiment data. This means that, on average, investors who bought the asset within the last year are holding it at a loss of 34.84%.
Investors holding at a loss are less likely to sell, reducing selling pressure and potentially stabilizing the price. A deeply negative MVRV ratio can also indicate a potential bottoming out, where the price might start to recover as sentiment shifts.
4. Partnerships and Integrations
Polygon has formed strategic partnerships with major companies and projects, including integrations with top DeFi platforms like Aave and Curve. These partnerships help to increase its visibility and credibility.
For instance, on September 25, Assetera launched Europe’s first regulated tokenized RWA market on Polygon.
Polygon is fast becoming home of RWAs : Assetera launches secondary tokenized RWA market on Polygonhttps://t.co/ayAO0pHEO9
— Sandeep | AggLayer (@sandeepnailwal) September 26, 2024
The platform will offer 24/7 trading for tokenized real-world assets, backed by Austrian Financial Market Authority regulation and MiFID II compliance.
5. Name Change to POL
The change in Polygon’s MATIC token name to POL came with an incentive for POL stakes. MATIC was exchanged for POL at a 1:1 ratio. Polygon’s new AggLayer has a reasonable chance of solving the fragmented liquidity issues in the Layer2 ecosystem. As more projects are built on AggLayer, there may be more airdrops available to POL stakes in addition to the inherent staking benefits.
Should You Buy Polygon (MATIC) Price?
Polygon is a robust network, and developers continue to build tirelessly. These factors combined make Polygon a promising investment. The network’s scalability, combined with the low price, is an attractive opportunity for investors.
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