Recently Polygon (CCC:MATIC-USD) reached a peak on Dec. 26 at $2.8988. Unlike other cryptos, it has been rising at the end of 2021 when others were dropping like flies. However, since then, it has backed off very hard from that price. As of Jan. 17 MATIC crypto was at $2.22 per token.
This means it’s down 20% from its peak price less than one month ago. That shows that this crypto can be quite volatile. Its variance is very high.
However, that is one reason why there is a good chance that MATIC crypto can probably do well in 2022. I think there is a good chance it could rebound from here, given the Polygon’s general usefulness as a popular cryptocurrency.
Where Things Stand With Polygon
Polygon had a very good return in 2021. Starting with its price of 1.781 cents on Dec. 31, 2020, MATIC crypto rose to $2.5784 by the end of 2021. This makes it one of the best-performing cryptos in 2021. It was up 144 times during 2021, an astounding return for anyone who actually held it during the whole year.
The truth is that most MATIC crypto holders likely bought in during the spring or later after it had already spiked. I suspect that most owners today probably have a cost of between $1.50 to $2.00 per MATIC crypto token.
So, this still gives most owners a pretty good return, likely between 16% to 52% or so. But, of course, that is a far cry from 144 times. For the most part, Polygon owners today want to see another great return performance during 2022.
Developers’ Affinity With Polygon
Recently, Polygon’s official blogsite posted an article that described by developers are using Polygon for “Web3” over other blockchains. Web3 refers to a newer version of the internet, a decentralized version, which does not depend on huge server farms to keep all the records.
It als0 refers to blockchains like Polygon with many different nodes that will house the next “decentralized” version of the internet. This is different from the present “centralized” system where server farms at Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), or Microsoft (NASDAQ:MSFT) control much of the internet’s traffic.
Polygon has also become a favorite of developers for non-fungible tokens (NFTs) and other digital collectibles. In fact, according to Decrypt magazine, this might even be one of its faults.
It is so popular that transactions are getting clogged on the Polygon platform, driving up fees and slowing transactions. Polygon was originally designed as an Ethereum (CCC:ETH-USD)-killer, with faster transaction times and lower fees.
The Polygon blog post said that the number of Web3 teams using Polygon as an Ethereum (CCC:ETH-USD) migration project blockchain has jumped 100 times in the last year.
Acquisitions by Polygon
As a result, major firms have been choosing Polygon as a platform to showcase their NFTs (non-fungible tokens) in NFT marketplaces. For example, recently the Associated Press said it would launch its own NFT marketplace on Polygon to support journalism.
To build up its capabilities, Polygon recently announced the acquisition of the Mir protocol. This will allow it to use “zero-knowledge proofs” for building decentralized applications away from the Ethereum network. It paid for the protocol using its own MATIC-USD tokens.
This will allow it to use “zero-knowledge proofs” for building decentralized applications away from the Ethereum network. It paid for the protocol using its own MATIC-USD tokens.
What To Do With MATIC Crypto
Polygon’s popularity with the NFT developer community combined with its own fast-growing network will continue to push MATIC crypto higher. Polygon’s popularity with developers, Defi sites, and the crypto-investing public will power MATIC crypto higher over in 2022.
Investors should probably expect it to double or near double sometime during the year.
On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) 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.