The price of Polygon Matic is dropping continuously at an unprecedented rate as of January third week, 2024. It is currently trading at $0.757 and has dropped by nearly 2% in the last 24 hours, as of January 23, 2024. As the new POL token came into existence, replacing the already existing MATIC token, it has become apparent for investors to wonder if Polygon Matic will keep dropping this year.

Will the MATIC token be completely replaced by the POL token? Is the MATIC token going to keep dropping in 2024? Let us find answers to all your questions in the present article.

Polygon Matic Overview

The Polygon Matic has always held an exceptional reputation in the crypto industry, being a scalable layer2 network on top of the Ethereum blockchain. The Polygon sidechain is connected to the Ethereum mainnet, which enables it to have the robust security and decentralization of the Ethereum network.

Polygon became a popular layer2 network in the industry within no time, addressing the pressing scalability issue of the Ethereum network. To improve the efficiency of the network further, Polygon introduced Polygon 2.0 upgrade and a new native token POL in Q4 2023.

Apart from the ever-evolving network developments, Polygon also holds numerous partnerships to contribute to the overall growth of the industry.

Market Performance of MATIC

Polygon Matic Price Chart

The native token of Polygon Matic, MATIC started trading in open markets with a starting price of $0.00263. While there was no significant growth in its price for several months, the 2021 bull market influenced its price to go up. As a result, MATIC’s price reached a peak of $2 in 2021.

The Polygon Matic’s price trend was always inline with the broader crypto market performance. During the 2021 bull market, MATIC’s price reached an all-time high value of $2.92. And, when the market was underperforming in 2022, the MATIC price dropped and went to as low as $0.50.

Coming to Polygon Matic’s market performance in 2023, it has a mix of highs and lows. It went on an upward trend till February and traded at around $1.52 by the end of the month. However, when the SEC called several cryptocurrencies, including MATIC, securities, it experienced a severe price drop and dropped to $0.59.

What Happened to MATIC Price After Polygon 2.0 Upgrade?

Fast forward to June 2023, the Polygon Matic community announced the launch of Polygon 2.0 upgrade. The upgrade took place from mid-June to mid-July 2023.The major purpose behind this was to make the network more decentralized and secure.

The upgrade was designed in such a way that the new network offers unlimited scalability and a unified liquidity layer. It connects all the ZK-proof sidechains and forms a network. Thus, the users of Polygon Matic can interact with the network seamlessly. From being a layer2 scalable network, Polygon aims to be a value layer of Ethereum with the new upgrade.

Following the upgrade, it also launched a new token called “POL” on October 25, 2023. The POL token is known to be a hyper productive token that improves the overall performance of the network. The MATIC token holders can exchange their tokens on a 1:1 basis with POL tokens.

With this, the Polygon network gained the trust and investor confidence, causing a price surge. The MATIC price increased considerably in November and December, crossing the $1 mark after several months. However, the enthusiasm that came with the new upgrade didn’t last longer.

Will Polygon Matic Keep Dropping in 2024?

Polygon MATIC Price Chart in Last 7 Days

The Polygon MATIC price is trading at around $0.757, with a 2% dip in the last 24 hours. It is currently recording a weekly drop of 12% and monthly drop of 10%, as of January 23, 2024. While the token recorded considerable gains after the launch of POL token and even traded above the $1 mark, it is now dropping continuously.

The new POL token launch could be the main reason behind the present price drop of MATIC token. Because users can exchange MATIC with POL and the POL token has more utilities in the network. It is known to be a hyper productive token and will empower the new network that is established after the Polygon 2.0 upgrade.

It is possible that the POL token will completely replace the MATIC token in the coming months. If that happens, the MATIC will lose its importance, causing all the investors to switch to POL. Eventually, It will be difficult for the MATIC token to prove its relevance and its price will keep dropping in 2024.

However, this is just one theory that could be behind the price drop of Polygon MATIC. On the other hand, the POL token is also dropping today. As with any other cryptocurrency, several factors come into play when it comes to their market performance.

There is a high chance that Polygon Matic will keep dropping. But, only time will tell if the token finds its uniqueness and stays relevant to the market in the coming months.

The post Polygon Matic Price: Will Polygon Matic Keep Dropping in 2024? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am