Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Polygon [MATIC] has reclaimed the $0.60 price mark after initially struggling. Its token showed weekly gains of over 16% at press time and was trading at $0.62.
Earlier, the Polygon foundation announced that POL contracts will be live on the Goerli testnet. Two proposals setting forth potential changes to the native token burning mechanism necessary for future upgrades went live as well.
Read Polygon’s [MATIC] Price Prediction 2023-24
Remember that last month, Polygon released a set of three Polygon Improvement Proposals (PIPs) on the 2.0 upgrade. One of these proposes replacing its native token, MATIC, with a new token, POL.
The team had underlined earlier that its decision had nothing to do with the U.S. Securities and Exchange Commission (SEC)’s decision to label MATIC as an unregistered security. When the SEC sued Binance [BNB] in early June, it classified MATIC, among other tokens, as security.
MATIC surged more than 20% following the news of Ripple [XRP] securing a partial victory in its legal battle with the SEC on 13 July. But that didn’t lead to a significant price rally.
Since the SEC’s enforcement action against Binance, MATIC has lost 40% of its value.
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.
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
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.
Source: ChatGPT
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.
Source: ChatGPT
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.
Source: ChatGPT
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.
Source: ChatGPT
ChatGPT predicts MATIC’s price action
At press time, Polygon’s native token MATIC was trading at $0.6139. When I asked ChatGPT about MATIC’s price action, the AI bot said,
Yes, there are positive signs indicating that MATIC’s price action could turn bullish in the near future. With the growing adoption of the Polygon network and its ecosystem, there is increased interest from investors and developers.
Source: ChatGPT
When I further questioned the AI bot, ChatGPT predicted MATIC to soar to impressive heights by the end of 2023, reaching $5 or higher.
Source: ChatGPT
Nonetheless, nothing can be expected with utmost certainty. Investors are best advised to invest time in extensive research and studying expert views.
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 interested in Polygon’s price prediction. At press time, MATIC was trading at $0.6139.
MATIC’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested above the neutral 50-mark. In conclusion, the on-chain metrics point towards a bullish price trend in the short run.
Source: MATIC/USD, TradingView
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?
Source: ChatGPT
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.
How much are 1,10,100 MATICs worth today?
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 that the coin could hit as high as $5-$7 by the end of 2023.
Its on-chart metrics, however, predict a bearish price movement for MATIC in the short run.