Polygon Matic, the native token of Polygon layer2 blockchain, is witnessing a downward price trend as of November 2023. Matic token’s price was influenced multiple times this year for a variety of reasons.

The launch of Polygon 2.0 added to the series of factors that influenced its price. After witnessing a considerable price surge post Polygon 2.0, Matic price is now going down. Let us discuss why Polygon is going down, including the reasons behind it.

Polygon Matic Price

The Polygon Matic token started trading in 2019 at an initial price of $0.00263. After trading sideways for several months, the MATIC price reached $2 in the mid-2021. After experiencing a downward trend for a few months, Polygon Matic reached an all-time high value of $2.92 in the 2021 crypto bull run.

In line with the broader crypto market performance, Polygon Matic price also decreased after its all-time high value. Matic fell down to $1 in the mid-2022 from a peak of $2.92. At times, its price even plunged to $0.50.

However, network developments like zkEVM made its price rise to $1 in August. Furthermore, Matic price got affected when the whole crypto market faced a big blow with the FTX crash. By the end of 2022, Matic was down 70% and had a close price of $0.7585.  Let us also get an insight into MATIC’s price performance in 2023.

MATIC Price in 2023

Polygon Matic’s price has a mix of upward and downward price trends in 2023 so far. The year started on the right foot with a price surge that continued till February. Matic broke the $1 and traded at around $1.52 on Feb 18, 2023.

The price correction took place before SEC called Polygon Matic, Cardano, and Solana securities at the beginning of June, 2023. As a result of SEC’s allegations several popular crypto exchange platforms announced the delisting of Matic tokens. This caused a sharp decline in the Matic price that was already following a downtrend. The price of Matic went to as low as $0.59 during this time.

Ripple had a partial win when the SEC ruled that XRP is not a security when sold on crypto exchange platforms to retail investors. This impacted Matic’s price positively and caused an increase to around $0.8 for a brief period. After that the Matic token traded sideways and saw a downward price trend until the launch of POL token.

Polygon 2.0, announced in June, is an upgrade to the Polygon blockchain. It transitioned the existing Proof-of-Stake (PoS) consensus to Proof-of-Stake Liquidity (PoSL) consensus. The primary objective behind this upgrade is to make layer2 more efficient with more liquidity.

As part of the upgrade, Polygon introduced a new POL token on October 25. It is known to be a “hyperproductive token” that empowers the ecosystem in multiple ways. All the Matic token holders can exchange their MATIC with POL tokens. The launch of POL caused a considerable increase in Matic’s price. Polygon Matic went up and reached a peak of around $0.9 on November 16, 2023. But, it couldn’t move further.

Why is Polygon Matic Going Down?

Disappointing investor’s expectations, Matic’s price decreased even before touching $1 and has been trending downwards since then.

The Polygon 2.0 upgrade and the POL token launch is a remarkable development to Polygon blockchain. One of the major aspects of this upgrade is to develop a new governance structure that is supposed to counteract the SEC’s allegations. Additionally, POL token is supposed to improve network’s activities with more use cases.

In contrast to the investor’s predictions, Polygon Matic price is trending downward after reaching around $0.9. At the time of writing, Matic is trading at $0.78 with a 6.61% dip in the last 7 days. There are no external factors that are influencing Matic’s price right now. This caused the industry to wonder why Polygon Matic is going down?

This is a pure price correction after its significant price surge in the last week. Thus, the Polygon Matic price is going down because some of the investors decided to exit the market. Price corrections are common in any market after witnessing a significant price surge. Because, investors try to bag some profits and exit the market, causing a dip.

Will Polygon Matic Go Up or Go to Zero?

We cannot say with certainty if Polygon Matic’s price will go up or go down in the following weeks. However, one thing is sure that it will not go to zero considering the strong fundamentals of this popular layer2 blockchain. Besides, the Polygon 2.0 upgrade gives positive signs for the overall growth and development.

No matter the short term price movements, Polygon does have a clear roadmap for future developments. It is one of the top 15 cryptocurrencies with a wide user adoption and positive investor sentiment. Coming to the question if Polygon Matic goes up again?, we will have to just wait and see, hoping the new upgrade won’t let us down.

FAQs

Why is Polygon dipping?

Polygon Matic price is following a downtrend as of the last week of November 2023 because of price correction.

Will Polygon Matic recover?

Yes, Polygon Matic seems to recover from the current downward price trend, as of November 2023, in the following weeks.