Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Lookonchain’s data revealed that addresses linked to the Polygon [MATIC] Foundation have deposited substantial amounts of MATIC tokens, amounting to millions of dollars, on the Binance [BNB] exchange within a short period.

Notably, one address deposited 6 million MATIC tokens worth $3.35 million in just two days, while another deposited 4.6 million MATIC worth $2.57 million in the last month. The transfer of funds raises concerns about potential selling pressure on MATIC.

Is Polygon Foundation selling $MATIC?

We noticed that “Polygon Foundation: 0x8d36” deposited 6M $MATIC ($3.35M) to #Binance in the past 2 days.

And another address “Polygon Foundation: 0xf957” deposited 4.6M $MATIC ($2.57M) to #Binance in the past 30 days. pic.twitter.com/zsQsB9PF3g

— Lookonchain (@lookonchain) September 7, 2023

MATIC surged more than 20% following the news of Ripple [XRP] securing a partial victory in its legal battle with the U.S. Securities and Exchange Commission (SEC) on 13 July. But that did not lead to a significant price rally.

The past week has seen its value drop to $0.5412.

Polygon is an L-2 solution for Ethereum [ETH] that aims to address the network’s scalability issues with a primary focus on the DeFi space. The blockchain recently stole the limelight after it launched its much-awaited zkEVM mainnet in March.

As Polygon continues to rise above others in the DeFi space, ChatGPT has had some insightful thoughts about the future of Polygon, its position in the DeFi ecosystem, zkEVM, and more.

Read Polygon’s [MATIC] Price Prediction 2023-24

ChatGPT is confident in Polygon’s zkEVM

With its usability and spread throughout the charts, Polygon has been one of the select few initiatives to amass the cryptoverse. It has also altered how people view the community surrounding layer-2 protocols.

The network has now established a benchmark for new layer-2 protocols in the cryptocurrency industry.

When I questioned ChatGPT regarding its thoughts about zkEVM, the AI bot quickly highlighted the solution’s notable features while also pointing out a few key benefits.

The bot also added that as L2 solutions continue to grow, it will be interesting to see how zkEVM competes with others.

Source: ChatGPT

Also, when asked whether zkEVM would have a broader impact on Polygon, ChatGPT responded confidently, stating,

“Overall, I believe that zkEVM has the potential to significantly improve the scalability, interoperability, and security of the Polygon network, which could help to attract more users and use cases to the network and position it as a leading player in the DeFi ecosystem.”

zkEVM vs. zkSync Era

While Polygon launched its ZK, it could not become the first L2 scaling solution, as the title was taken by zkSync. The solution went live just three days before the launch of Polygon’s zkEVM.

Upon asking ChatGPT about which one of them was better, it was hesitant to deliver a crisp response. The AI bot stated that the choice between Polygon zkEVM and zkSync may depend on multiple factors, like developer familiarity with programming languages, specific use cases, and project goals.

What the AI bot thinks about Solana, Polygon’s competitor

Another main player in the DeFi space is Solana [SOL], which is also a direct competitor of Polygon. However, Solana’s reliability has always been in question, as it has fallen victim to multiple outages over the years.

The latest one happened in February when the Solana network experienced a forking event that throttled users’ ability to execute transactions. However, it was fixed later.

When asked about whether Solana could pose a threat to Polygon in the DeFi space, ChatGPT responded by highlighting Solana’s achievements and the possibility of both networks coexisting to serve different use cases.

It added,

“While Solana’s high scalability and throughput make it an attractive option for DeFi projects, it’s difficult to say whether it poses a direct threat to Polygon.”

However, to get a better opinionated response from the AI friend, I tried to reeducate it by “jailbreaking” the AI. It was interesting to see a different response from ChatGPT after it was jailbroken.

In the new response, it mentioned that Solana could become a major competitor for Polygon in the coming years.

The future of Polygon

Apart from zkEVM, Polygon also has quite a few projects in the pipeline, which, too, have the potential to fuel growth in the future. For instance, Polygon Miden. It will be the first decentralized rollup that leverages execution proofs of concurrent, local transactions. Miden will allow anyone to execute a transaction and create STARK-proof for the network.

However, ChatGPT’s knowledge regarding Miden was not adequate. Therefore, its reply when asked about the possible impact of Miden on Polygon was not on par.

ChatGPT predicts MATIC’s price action

At press time, Polygon’s native token MATIC was trading at $0.5412. Its price is the same as it was a week earlier. When I asked ChatGPT about MATIC’s price action, the AI bot said,

“The cosmic winds of DeFi, scalability, and layer 2 solutions have propelled MATIC into the spotlight. While the stars may align for bullish trends, it’s important to recognize that cryptocurrency markets are influenced by multifaceted factors, and predicting precise price movements is challenging.”

When I further questioned the AI bot, ChatGPT projected MATIC’s price to hit $5-$7. Nonetheless, nothing can be expected with utmost certainty. Investors are best advised to invest time in extensive research and studying expert views.

How much are 1,10,100 MATICs worth today?

A closer look at MATIC’s daily chart

Since Q4 2022, the number of daily users of Polygon has increased dramatically and surpassed that of daily users of Ethereum.

As MATIC is one of the most valuable cryptocurrencies, it has naturally drawn a lot of investors. Marketers and investors have always been concerned about Polygon’s price prediction.

MATIC has not been performing well for the past few days. Though its price surged substantially immediately following the SEC-Ripple judgement, it fell the next day. At press time, it was trading at $0.5412.

While both MATIC’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested just below the neutral 50-mark, its On Balance Volume (OBV) showed some positive movement.

In short, the bears seem to be pulling down the token in the short-term.

Polygon and DeFi, a match made in heaven?

As Polygon continues to expand and grow its DeFi ecosystem, one thing can be said with certainty—the blockchain has a long way to go and many more milestones to achieve over the years to come.

So, I thought of asking ChatGPT the most valuable question: Polygon and DeFi, a match made in heaven?

Without differing, both versions of the AI bot responded positively to the question. The re-educated version even drew comparisons with world-renowned duos like Peanut Butter and Jelly or Batman and Robin, which was interesting to see.

Conclusion

Chatting with ChatGPT about Polygon and its presence in DeFi gave a clear indication that the AI chatbot was quite optimistic about the future of MATIC. It predicted the coin to hit $5-$7 by the end of this year.

However, its on-chart metrics predict a bearish price movement.

The post ChatGPT says that MATIC will reach $5-$7, but there’s a catch appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ September 10, 2023 2:24 pm