The Market Performance of Polygon MATIC in 2024
The present blog post examines the market performance of Polygon MATIC and analyzes whether its price will continue to drop throughout the year.
The price of Polygon Matic is currently at $0.757, having dropped by nearly 2% in the last 24 hours as of January 23, 2024. This continuous drop in price raises questions, especially with the introduction of the new POL token replacing MATIC.
Polygon Matic Overview
The Polygon Matic has always held an exceptional reputation in the crypto industry, serving as a scalable Layer 2 network on top of the Ethereum blockchain. The Polygon sidechain is connected to the Ethereum mainnet, ensuring robust security and decentralization.
Addressing the scalability issue of the Ethereum network, Polygon became a popular Layer 2 network and introduced the Polygon 2.0 upgrade along with the new native token POL in Q4 2023.
Market Performance of MATIC:
- MATIC started trading at $0.00263.
- Reached a peak of $2 in 2021 during the bull market.
- During the 2021 bull market, MATIC’s price reached an all-time high value of $2.92.
- In 2022, MATIC price dropped to as low as $0.50.
In 2023, MATIC experienced highs and lows, trading at $1.52 in February and dropping to $0.59 after the SEC classified it as a security.
Polygon 2.0 Upgrade and POL Token
In June 2023, Polygon Matic announced the Polygon 2.0 upgrade, making the network more decentralized and secure. The upgrade introduced the new token POL on October 25, 2023, which contributed to a surge in MATIC price.
After the initial enthusiasm, MATIC’s price is now continuously dropping, trading at $0.757 with a 2% dip in the last 24 hours, recording a weekly drop of 12% and a monthly drop of 10% as of January 23, 2024.
Will Polygon Matic Keep Dropping in 2024?
The new POL token launch could be a significant factor behind the current price drop of MATIC, as users can exchange MATIC with POL, which has more utilities in the network. If POL completely replaces MATIC, the latter may lose its importance, leading to a continuous drop in price throughout 2024.
While there is a high chance that Polygon Matic will keep dropping, various factors influence cryptocurrency market performance. Time will reveal whether MATIC finds its uniqueness and remains relevant in the coming months.
