- A popular crypto analyst stated that after this highly anticipated development, an altcoin that has been experiencing explosive price movements lately may ignite a rally.
Renowned strategist, blockchain scaling solution Polygon (MATIC)He said that Ethereum (ETH) is ready to rally ahead of its much-anticipated Merge, which is scheduled to take place next month.
In a new video update, Coin Bureau’s host, known by the alias Guy, claims that MATIC is still struggling, despite having made a lot of bullish improvements over the past few months.
“The MATIC token has been hit hard by the crypto bear market and has dropped nearly 50 percent since I last covered the project in March, but is currently starting to show some signs of recovery.
Alongside the crypto bear market, the MATIC token has also been stifled by selling pressure, as evidenced by the massive increase in its circulating supply over the past few months. Since March, the supply of MATIC has increased by approximately 340 million.”
According to the analyst, as Ethereum transitions from a Proof-of-Work mechanism to a Proof-of-Stake mechanism, MATIC also looks set to rise despite its struggles. Guy claims Polygon will benefit from this change as scaling solutions will become more environmentally friendly.
“MATIC looks set to continue its short-term rally regardless of these fundamentals, and this is due to the goal of Ethereum’s upcoming transition to Proof-of-Stake to take tokens like MATIC on a journey to the Moon.
Based on acceptable amateur technical analysis, MATIC could go as high as $1.50 by Ethereum’s Merge in mid-September. This is also pretty consistent with its own price action, which predicts ETH will experience up to 2x gains between now and that timeframe.
This makes sense because Consolidation will almost certainly benefit MATIC as it will make scaling solutions more environmentally friendly. This will also increase Polygon’s already strong appeal to institutional investors…
However, Polygon scaling solutions will also be required post-Merge, as Consolidation will have little or no impact on Ethereum’s transaction speeds or fees.”
According to data received by CoinGecko, MATIC is trading at $0.92 at the time of writing, an increase of over 63 percent from last month.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.