Polygon (CCC:MATIC-USD) continues to make noise this week as it unveils some big news at an event it is hosting today. With chatter around blockchain scaling getting louder as the year progresses, layer-2 plays like Polygon have been able to thrive. Now, it is harnessing new powers thanks to a massive acquisition. With new high-performance tech now under the Polygon umbrella, the MATIC coin is readying for a breakout. Of course, investors are seeking out Polygon price predictions to see just how high or low these predictions might be.
The news today stems from the zk Summit event which Polygon is currently hosting. The event is, as its name implies, all about the zero knowledge (zk) proofing mechanism. With zk, a third party can verify transactions without seeing or recording every single bit of data to the blockchain. In this sense, zk is a win-win for every party. Nodes record less data on the blockchain, which translates to lower transaction fees. Meanwhile, users completing transactions have the benefit of privacy. This is because only partial data records to the chain.
Polygon is quite bullish on zk technology, and as such, it’s hosting this summit to open up a broader dialogue on it. The summit includes speakers from the blockchain industry; the most notable among the pack is Vitalik Buterin, co-founder of the Ethereum (CCC:ETH-USD) network.
MATIC bulls have been waiting in excitement for this event. That’s because Polygon developers also tipped holders off to a big announcement coming at the event.
Polygon Price Predictions Heat Up Following Developer Reveal
The network announced that it is acquiring zk-rollup startup Mir Protocol. Polygon will be buying the startup for a whopping $400 million. Of course, this transaction is occurring largely in MATIC; $300 million of the payment will be made in MATIC. The other $100 million will be delivered in the form of USD Coin (CCC:USDC-USD).
With this transaction, Polygon is absorbing the Mir Protocol into its umbrella and renaming it Polygon Zero. The acquisition is yet another step in Polygon’s plan to offer the most robust network of layer-2 scaling options to its users. The Polygon Zero solution is one of 10 different scaling solutions which Polygon offers now.
In the wake of the acquisition, MATIC prices are actually on a downswing. Ending a pleasant week of mostly upward climbs, the MATIC crypto is down about 12% this afternoon. Of course, with the bullish news, investors have reason to use the downswing as an opportunity to buy at a discount. But what’s next for the future of MATIC?
Let’s take a look at some Polygon price predictions and see what analysts are thinking:
- CoinPriceForecast thinks MATIC is good for a gain of over 50% through the end of the year. The outlet is targeting a price of $3.21 for the coin heading into the new year.
- DigitalCoinPrice’s year-end forecast calls for a $3.11 MATIC price. By the end of 2022, the site expects that price to increase to $3.74.
- Similarly to DigitalCoinPrice’s December 2022 forecast, WalletInvestor expects MATIC to be worth $3.65 in that time frame.
- Gov Capital is setting a $3.71 price target on MATIC in the next 12 months.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.