A popular crypto analyst says that blockchain scaling solution Polygon (MATIC) is poised to rally ahead of the much-anticipated Ethereum (ETH) merger next month.
In a new video ModernizationCurrency desk host Jay says Matic has been struggling despite seeing several 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 some signs of recovery.
Besides the bearish cryptocurrency market, the MATIC token has been suppressed by selling pressure as evidenced by the massive increase in circulating supply over the past few months. Since March, Matic’s offering has increased by about 340 million.”
According to the analyst, MATIC appears poised for a rally despite its struggle with the Ethereum update from Proof of Work to Proof of Stake. Jay says Polygon will benefit from the switch because its expansion solutions will become more environmentally friendly.
“MATIC is likely to continue its climb in the short term regardless of these fundamentals and this is due to Ethereum’s upcoming move to Proof of Stake, which is taking tokens like MATIC on a mission to the moon.
Based on Admittley’s amateur technical analysis, MATIC could rise to $1.50 in the run-up to the Ethereum consolidation in mid-September. This corresponds to the price action of ETH which is anticipating a 2x increase every now and then.
This also makes sense because MATIC will almost certainly benefit from the consolidation as it will make their expansion solutions more environmentally friendly through sprawl. This will increase Polygon’s already high attractiveness to institutional investors…
Furthermore, Polygon scaling solutions will still be needed after the merger because the merger will not affect Ethereum transaction speeds or fees that much, if at all.”
MATIC is trading at $0.919 at the time of writing, an increase of 1.7% from today.
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