One analyst is setting 2022 price targets for a layer-2 scalability solution that’s already had a breakout year.
In a new strategy session, James Mullarney of financial education YouTube channel InvestAnswers tells his 377,000 YouTube subscribers where he thinks Polygon (MATIC) is headed after the project made several large acquisitions.
“I took into account some of my new Ethereum [ETH] price-prediction models. I took into account the new EIP-1559 burn [during the ETH’s London upgrade back in August].
I took into account the new ZK [zero-knowledge framework] features and acquisitions that could help.
From this, my new price predictions for 2022, my bear case, which is the low [$3.90], to my expected case, which is $4.61 for next year, to my high case of $6.31. These are going to be critical for us to determine our exit plan.”
In a zero-knowledge proof, one party is able to prove the veracity of a piece of information to a second party without revealing the information itself. Cryptographers employ the ZK method for increased levels of security and data privacy.
Mullarney also talks about notable fundamental developments that explain why he’s long-term bullish on MATIC.
“Polygon MATIC is going multichain. Uniswap is another one that’s going to move over to Polygon because Uniswap has been suffering due to gas fees, and they made an overwhelming vote to move to Polygon.”
The Uniswap (UNI) community recently voted 98.87% in favor of deploying Uniswap v3 via Polygon’s network.
Mullarney that Polygon has also made big strides to improve its repertoire of scaling technologies in the form of ZK rollups. According to the analyst, ZK rollups are very important because they bundle hundreds of transactions off-chain which are verified instantly in the main chain, resulting in a faster finality time.
Says Mullarney on Polygon’s recent acquisitions,
“Two of the acquisitions they made: the first one is Hermez [open-source ZK rollup for $250 million], and then they recently bought [ZK-proof startup] Mir Protocol for $400 million to expand their Ethereum capacity.
To zoom out for a second, ZK rollups clearly are a thing… 2022 will all be about ZK rollups.”
At time of writing, the price is MATIC flat on the day at $2.08. The altcoin ripped from $0.02 a year ago to an all-time high of $2.70 back in May.
The InvestAnswers predicts that he could see Polygon overtaking other Ethereum rivals in terms of market cap size.
“Polygon is a beast. It’s ranked number 14 right now. It’s bigger than Algorand and Chainlink…
This could very easily be a top-10 crypto.”
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