Blockchain scaling solution Polygon (MATIC) is poised to rally ahead of next month’s much-anticipated ethereum (ETH) merger, according to a popular cryptocurrency analyst.
in a new video renewthe pseudonymous host of the Coin Bureau known as Guy said that despite seeing many bullish developments over the past few months, MATIC is still struggling.
“MATIC token has been hit hard by the crypto bear market and is down about 50% since the project was last reported in March, although it is starting to show some signs of recovery.
In addition to the crypto bear market, MATIC tokens have also been suppressed by selling pressure, as evidenced by the massive increase in their circulating supply over the past few months. Since March, MATIC’s supply has increased by about 340 million. ”
According to the analyst, although MATIC is still struggling as Ethereum upgrades from proof-of-work to proof-of-stake, it appears poised to soar. Guy said Polygon will benefit from the switch as its scaling solutions will become more environmentally friendly.
“Regardless of these fundamentals, MATIC is likely to continue its short-term rally as Ethereum is about to transition to proof-of-stake, which is bringing tokens like MATIC to the moon.
According to admitted amateur technical analysis, MATIC could rally to a high of $1.50 ahead of the Ethereum merger in mid-September. This is in line with the price action of ETH itself, which is expected to rise 2x between now and then.
It also makes sense, as MATIC will almost certainly benefit from the merger as it will make its scaling solution greener by extension. This will increase Polygon’s appeal to institutional investors…
Also, a polygon scaling solution is still needed after the merger, as the merger won’t have much impact on Ethereum’s transaction speed or fees, if any. “
At the time of writing, MATIC is changing hands at $0.919, up 1.7% on the day.
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