Many crypto investors are wondering if Polygon can reach $1,000. Unless the supply of the MATIC token undergoes a drastic reduction at some point in the future, it’s unlikely that Polygon will ever reach a price of $1,000. However, this doesn’t mean that the project doesn’t have potential to be a strong performer over the long term.
About Polygon
Polygon is a blockchain project which was initially founded under the name Matic Network in 2017. The project’s original name is the reason why the token used in the Polygon ecosystem is called MATIC, even after the project itself adopted the new name in February 2021.
The Polygon project’s core mission is to create scalability solutions based on the Ethereum blockchain. As you probably know if you’ve ever used the Ethereum blockchain, transactions fees can get very high during periods of heightened demand.
Polygon is creating platforms that benefit from the strong security of the existing Ethereum network, but allow users to make transactions faster and at a lower cost. Currently, Polygon’s flagship platform is Polygon PoS, a Proof-of-Stake blockchain platform that’s compatible with the Ethereum Virtual Machine.
While the project is also working on a number of other scaling solutions, if you see someone referring to the “Polygon blockchain”, they’re most likely talking about the Polygon PoS platform.
| Name | Polygon |
|---|---|
| Founded in | 2017 |
| Founders | Sandeep Nailwal, Jaynti Kanani, Mihailo Bjelic, Anurag Arjun |
| Main product |
|
| Native asset | MATIC |
| Market cap | $7.2 billion |
The Polygon project’s MATIC token is one of the biggest crypto assets on the market, and Polygon has attracted a large number of crypto investors, users and community members. Therefore, it’s not too surprising many people are wondering how high the price of MATIC could go in the future.
Can Polygon Reach $1,000?
So, can MATIC reach $1,000? To cut a long story short, the answer is probably no. Let’s take a closer look at the numbers to show you why you shouldn’t expect Polygon to reach a price of $1,000.
MATIC has a total supply of 10 billion tokens. If the price of one MATIC token was $1,000, that would translate to a market capitalization of $10 trillion for Polygon. Let’s put this figure in context by showing the market capitalization of the world’s five most valuable companies at the time of writing:
- Apple: $2.72 trillion
- Microsoft: $2.29 trillion
- Saudi Aramco: $1.98 trillion
- Alphabet: $1.36 trillion
- Amazon: $1.08 trillion
If Polygon had a market capitalization of $10 trillion, it would be more valuable than the world’s 5 most valuable companies combined. We don’t need to go into too much detail to conclude why this would be an extremely unlikely scenario.
To strengthen our point, let’s compare what a hypothetical $1,000 MATIC price would mean in the context of the cryptocurrency market.
The total cryptocurrency market cap peaked in November of 2021 at just under $2.9 trillion. In the same month, Bitcoin reached its highest-ever market cap of $1.22 trillion. So, if MATIC had a price of $1,000, it would be 8.19x larger than Bitcoin at its historical peak.
At the time of writing, MATIC is trading at a price of $0.902 and its market capitalization is $7.22 billion. Please note that the current MATIC market capitalization is calculated using the current circulating MATIC supply (8.01 billion tokens) instead of the total MATIC supply (10 billion tokens).
To reach a price of $1,000, Polygon would need to see a 1,108x increase in price. While such multiples are not unheard of in the cryptocurrency market, it would be extremely difficult for an asset that’s already valued at $7.22 billion to produce such a performance as that would require truly immense amounts of capital to be invested into Polygon.
The only feasible way for Polygon to reach $1,000 would be a redenomination of the MATIC token. Such a measure could technically bring the price of 1 MATIC token to $1,000, but that wouldn’t mean much for investors as the total value of their holdings would stay the same.
Another way Polygon could theoretically reach a price of $1,000 would be a MATIC token burn that would drastically reduce the supply. However, this is unlikely to happen in practice.
MATIC crypto price prediction
Even though we’ve hopefully established that you shouldn’t expect the Polygon price to reach $1,000, MATIC could still be a very interesting cryptocurrency to follow in the future. Let’s take a look at what our Polygon price prediction is forecasting at the moment.
Currently, our price prediction is forecasting a very positive scenario for Polygon in the medium term. The current prediction is indicating a rally in the MATIC market in the second half of 2023, which would then accelerate massively at the start of 2024.
The prediction is even forecasting MATIC to hit a price of $7.71, which would be considerably higher than the token’s current all-time high price ($2.91).
Is Polygon a good investment over the long term?
Polygon is one of the best-established cryptocurrency and blockchain projects at the moment. The MATIC token is the 10th most valuable crypto asset on the market at the time of writing.
Polygon is tackling the issue of Ethereum scalability, which is one of the most important areas in the entire crypto ecosystem. This makes it likely that Polygon will remain a relevant player in the coming years.
The scaling solutions developed by Polygon have been adopted by a number of notable companies and projects. For example, Reddit is utilizing the Polygon PoS blockchain to issue their Collectible Avatars NFTs, resulting in significantly lower costs for customers compared to using the Ethereum mainnet.
Don't sleep on @Reddit's Collectible Avatars? https://t.co/Yj9ZfBdjJf
— Polygon (Labs) (@0xPolygonLabs) March 6, 2023
Another example is investment platform Robinhood, which used Polygon to implement a crypto swapping feature into its Robinhood Wallet app. Polygon is also used by web3 social media platform Lens Protocol, which was founded by Aave founder Stani Kulechov.
Currently, the Polygon PoS platform is by far the most popular product developed by the Polygon project. However, the project is also working on a range of other scaling solutions that could become much more relevant in the future. This includes Polygon zkEVM, which leverages zero-knowledge rollups to provide a layer 2 for Ethereum with significantly cheaper and faster transactions.
The bottom line — Don’t expect Polygon to hit $1,000, but the future could still be very bright
If you’re expecting the Polygon price to hit $1,000, you’re likely in for a disappointment. As we’ve demonstrated, such a price would entail a truly massive valuation of $10 trillion, which would be a very unlikely scenario.
However, Polygon does have a lot of things going for it. It’s already one of the most valuable cryptocurrencies on the market, and Polygon’s solutions are already being used by significant players like Reddit and Robinhood. If Ethereum is going to reach widespread adoption, scaling solutions like those being developed by Polygon will likely play a key role moving forward. Due to these factors, Polygon deserves a spot on our list of the best cryptocurrencies to hold for the long term.
