In the cryptocurrency world, where rises and falls are the norm, it is rare to find an altcoin that stays in the red for an extended period of time. However, amid the ongoing Bitcoin rally, two intriguing investment prospects have struggled to regain their footing in 2023. Dominic Basulto, analyst of US-based consulting giant The Motley Fool, explained why Polygon and Uniswap are in decline. He also studied their stories to discover their comeback potential. Here are the details…
There is optimistic sentiment for altcoin MATIC
cryptokoin.com As we reported, Polygon (MATIC) made a big splash in 2022 as a layer 2 scaling solution for Ethereum with the promise of faster and cheaper transactions. At the time, Polygon was positioned as the best layer 2 solution for Ethereum, with a bright future tied to Ethereum’s growth. Unfortunately, according to the analyst, the path has veered in a different direction. Earlier in the year, Polygon Labs, the company behind MATIC, faced layoffs. To make matters worse, the Securities and Exchange Commission (SEC) has expressed concerns about MATIC’s regulatory status, implying that it may be an unregistered security. Moreover, competition in the layer 2 space has intensified.
However, all hope is not lost. Polygon’s new strategy, Polygon 2.0, involves rebranding MATIC to make it more attractive to investors. If successful, this ambitious move could help Polygon regain its status as Ethereum’s top layer 2 scaling solution. The journey is challenging, but the potential payoff is significant, according to the analyst.
Uniswap is also on the analyst’s list
On the other hand, Uniswap (UNI) attracted attention as a decentralized exchange, especially after the collapse of FTX, a centralized exchange. Decentralized exchanges, which keep funds in Blockchain wallets outside the exchange, promised greater security. But Uniswap, like others in the decentralized exchange space, has faced challenges due to a downturn in trading activity amid the crypto winter. What is surprising is that while Uniswap fell by almost 20 percent, the centralized exchange Coinbase Global (COIN) rose by 54% in the same year.
However, Uniswap remains the leader in terms of 24-hour trading volume among decentralized exchanges, at times even exceeding Coinbase’s volume. According to the analyst, a potential catalyst for Uniswap could be the return of individual investors to the crypto market in 2024. The upcoming Bitcoin halving and the launch of new spot Bitcoin ETFs are making noise. According to the analyst, this means that a Bitcoin rally could significantly increase trading activity. If Uniswap can diversify its offerings to include more than cryptocurrencies, its price could see a revival.
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Consultancy Giant: These 2 Collapsed Altcoins Will Explode!