A popular crypto analyst says blockchain scaling solution Polygon (MATIC) is poised to pre-empt Ethereum’s (ETH) long-awaited Merge next month.
In a new video updateCoin Bureau’s pseudonymous host known as Guy says MATIC is struggling despite seeing many bullish developments over 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, although it is starting to show signs of recovery.
In addition to the crypto bear market, the MATIC token has been suppressed by selling pressures, as evidenced by the significant increase in circulating supply in recent months. Since March, MATIC’s offer has increased by about 340 million.”
According to the analyst, MATIC appears poised to rise despite its struggles as Ethereum upgrades from a proof-of-work mechanism to a proof-of-stake mechanism. Guy says Polygon will benefit from the move as its scaling solutions will become more environmentally friendly.
“MATIC is likely to continue its short-term rally regardless of these fundamentals and that is due to Ethereum’s impending transition to a proof of stake, which will take tokens like MATIC on a mission to the moon.
Based on amateur technical analysis, MATIC could rise to $1.50 ahead of Ethereum’s Merge in mid-September. This is in line with ETH’s own price action, which predicts 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 strong appeal to institutional investors…
In addition, Polygon scaling solutions will still be needed after the merger, as the merger will have little or no impact on Ethereum’s transaction speeds or costs.”
MATIC is changing hands for $0.919 at the time of writing, a 1.7% gain on the day.
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