1. Fundamental analysis:
A. Team and developers:
The Polygon team includes distinguished developers like Sandeep Nailwal and Jaynti Kanani, who have extensive experience in the blockchain space.
The project focuses on improving the scalability of the Ethereum network, one of the largest blockchain networks.
B. Objective and practical application:
Polygon offers a solution to a major problem facing Ethereum: high gas fees and slow transactions.
It provides layer-2 solutions like Plasma Network and Sharding, making it very practical for decentralized applications (dApps).
C. Partnerships:
Partnerships with notable projects like Aave, Uniswap, and OpenSea, demonstrating Polygon’s strong reliance on the DeFi and NFT ecosystem.
D. Supply and demand:
Total supply: 10 billion MATIC coins.
Current circulation: about 9.3 billion coins (about 93% of the total).
Demand is rising as applications on the Polygon network increase usage.
H. Official documents and information:
The project's whitepaper is clear and explains performance improvement solutions, making it easy to understand even for new investors.
2. Technical analysis:
A. Price action:
Current price (example): $0.80 (may change).
All-time high: $2.92 (in December 2021).
Lowest price during the year: about $0.50.
B. Support and resistance levels:
Strong support level: $0.70.
Major resistance level: $1.00.
C. Technical indicators:
Relative Strength Index (RSI): Shows that the currency is currently in a balanced range (neither overbought nor oversold).
Moving Average: The price is close to the 50-day moving average, which may indicate a stable trend.
D. Trading Volumes:
Trading volumes are relatively high compared to rival currencies, indicating good liquidity.
3. External factors:
A. General economic situation:
Interest in decentralized finance and NFTs is driving demand for Polygon.
If the broader cryptocurrency market declines, it could negatively impact MATIC.
B. Organization and laws:
Polygon has not faced any major regulatory issues so far, making it more stable compared to some other coins.
C. Competition:
Major competitors like Optimism and Arbitrum offer similar solutions. But Polygon stands out with its large number of partnerships and support.
4. Measuring governance and society:
A. Community Power:
Active fan base on social media (Twitter, Reddit, Discord).
Continued support from the community increases the stability of the project.
B. Transparency:
The team regularly updates investors and users about new developments.
Major partnerships and announcements are often well documented and advertised.
5. Historical performance:
During the 2021 bull market, MATIC experienced tremendous growth.
In bear markets, it has declined but maintained higher price levels than most rival currencies.
6. Practical applications and future value:
The increasing demand for decentralized applications (DeFi) and NFT networks makes Polygon a viable option for developers and investors.
Continued support from major institutions and projects ensures a bright future.
Final evaluation:
Strengths: Innovative technology solutions, strong partnerships, active community.
Risks: Strong competition from other projects, general exposure to the cryptocurrency market.
Prediction: If decentralized applications continue to grow and layer 2 adoption increases, the price of MATIC could rise significantly in the coming years.