2023 Could be a Good Year for Polygon (MATIC) – Bloomberg Intelligence
According to a Bloomberg Intelligence crypto outlook from Mike McGlone for February, Polygon (MATIC) will see increased adoption.
The layer-2 scaling solution is considered one of the most important blockchain protocols in the industry as it seeks to power crypto projects and scale Ethereum transactions.
Polygon combines the Plasma Framework and blockchain architecture for proof of stake (PoS). Plasma, which Etereum co-founder Vitalik Buterin proposed, enables the easy execution of scalable and autonomous smart contracts.
Polygon boasts up to 65,000 transactions per second per side chain and a good block confirmation time of less than two seconds. The framework in question also enables the creation of globally accessible decentralized financial applications on a single underlying blockchain.
Per the report:
“Of the entire worldwide blockchain economy, Polygon has the third-largest ecosystem for decentralized apps (dApps). Its 359 dApps are more than three times that of its closest L2 rival and half that of Ethereum. Many of the most popular DeFi dApps on Ethereum, including Aave and Uniswap, have migrated over and are being developed on Polygon. Additionally, the network has more developers than its closest alternative L1 rivals, Avalanche and Fantom.”
The Polygon Network also gained traction with partnerships with corporate giants like Nike, Disney, Starbucks, Coca-Cola, Meta, and Reddit.
The report states that based on these significant brand partnerships during last year, 2023 could be the year of mainstream NFT adoption.
Bloomberg Intelligence also highlights that the crypto market will be going through a global recession for the first time in history.
“Cryptos may face their first real recession, which typically means lower asset prices and higher volatility. The last significant US economic contraction, the financial crisis, led to the birth of Bitcoin, and the possible coming economic reset may mark similar milestones. A key question is how much price pain will there be before longer-term gains resume.”
It explains how the upward trajectory of ETH/BTC that started in 2019 shows almost no signs of losing its intensity.
“A resting bull market is our take on the cross between the No. 2 crypto and No. 1 Bitcoin, which is becoming a digital version of gold in a world going that way. The graphic shows the steady ETH/BTC rate since the 2021 peak in the Bloomberg Galaxy Crypto Index. That suggests migration into the mainstream, and once the dust settles from some reversion in risk assets, Ethereum is more likely to resume doing what it’s been doing: outperforming.”