Analyst’s Strong Recommendation for MATIC: Is it Time to Increase Investments in Polygon and Ethereum Layer-2 Tokens?

Ryan Sean Adams’ Bullish Stance on MATIC

Ryan Sean Adams, a prominent Ethereum commentator and crypto investor, recently expressed his optimism about MATIC, the native token of Polygon. He asserted that MATIC should be considered a top-10 crypto asset, highlighting that many people are undervaluing layer-2 solutions.

Polygon (MATIC) in the Market

As of November 8, MATIC holds a position among the top 15 most valuable coins by market capitalization. Despite its volatility and fluctuations in market rankings, MATIC remains relatively liquid, boasting a broad user base. According to CoinMarketCap (CMC), MATIC’s market valuation exceeds $7.3 billion.

Etherscan data from November 8 reveals that there are 629,967 MATIC holders, indicating a slight decrease of around 2%. However, this number remains higher despite the contraction experienced during the crypto winter of 2022, which extended into 2023.

Currently, MATIC has surged by 60% from its September 2023 lows. CMC data also indicates a 13% increase on the last trading day, contributing to a weekly gain of over 27%. The daily chart shows a strong uptrend momentum, with buyers demonstrating increased confidence.

Bullish bars are aligned along the upper Bollinger Bands (BB), indicating significant buying pressure. Additionally, MATIC is within a bullish breakout formation, surpassing previous highs recorded in August.

Polygon: A Scalable Solution for Ethereum

Polygon, functioning as a sidechain, is one of the many scaling solutions for Ethereum. It seamlessly integrates with Ethereum, allowing protocols to build on Polygon while benefiting from the high activity and security of the primary smart contract network. Although Polygon is categorized as a layer-2 solution, it operates differently from roll-ups like Arbitrum or OP Mainnet.

Investment Outlook: MATIC and Layer-2 Tokens

Adams suggests considering layer-2 tokens, such as MATIC and ARB, at their current levels, anticipating potential gains in the upcoming bull run. However, it’s important to note that MATIC has experienced a 72% decline from its 2021 highs and is currently trading within June’s bear trade range. A decisive breakout above this level might signal the end of the bearish trend, possibly leading to a target price of $1.5.

In late October, Polygon Labs launched POL, a token integral to Polygon 2.0 and Ethereum integration. This development marked the initial phase of MATIC’s gradual transition. POL serves multiple roles within Polygon 2.0, powering an ecosystem of zero knowledge-based layer-2 chains utilizing Polygon’s infrastructure. The launch of this smart contract elicited increased demand, consequently driving token prices higher.

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