Matic/ETH Prediction | Ethereum blockchain scaling solution

As Ethereum (ETH) transitions to Ethereum 2.0, crypto enthusiasts are hoping for a price increase.

Ethereum has now completed The Merge and moved the Ethereum blockchain from the proof-of-work (PoW) consensus mechanism to the proof-of-stake (PoS), drastically reducing its environmental impact.

The merger can be beneficial Polygon (MATIC)a Layer-2 scaling solution and protocol stack meant to solve Ethereum’s scalability issues.

In accordance CoinMarketCapOn September 15, ETH traded at $1,608, up 5.68% from the previous week. MATIC was traded at $0.8573. ETH’s year-to-date (YTD) loss was about 56%. MATIC’s YTD loss was about 66%.

Here we take a look at the MATIC to ETH exchange rate, latest news and other factors shaping MATIC/ETH predictions.

What is MATIC/ETH?

Ethereum has been hampered by network congestion and transaction costs due to its popularity among developers creating decentralized applications (dApps), smart contracts, and decentralized finance protocols (DeFi).

Also, Ethereum’s transaction throughput is much slower than some of its closest rivals, such as Solano (SOL) and Cardano (ADA), and gas prices have increased as interest in DeFi has skyrocketed.

The new Ethereum Merge upgrade is expected to help solve these problems, keeping the network ahead of the competition.

Meanwhile, Polygon is a Layer-2 scaling solution for scalability and infrastructure development on Ethereum. The project intends to establish “Ethereum’s Internet of Blockchains” by solving the network’s scalability issues and providing developers with tools to build ultra-scalable and high-performance blockchains and dApps.

Like other multichain systems, such as Polkadot (DOT), Cosmos (ATOM), and Avalanche (AVAX), Polygon offers a multichain system.

The advantage of the Polygon multi-chain architecture is that it incorporates the security, vibrant ecosystem and accessibility of Ethereum.

Polygon is also the only scaling solution that supports the Ethereum Virtual Machine (EVM), which facilitates the flow of value and data across blockchains and removes the technical barriers between them.

The merger is expected to make Layer-2s more environmentally friendly, with Polygon saying it will ultimately reduce their carbon emissions by 60,000 tonnes, or 99.91% of their present value.

MATIC/ETH historical price analysis

Since their debut, ETH and MATIC coins have delighted investors with 56,307% and 18,807% gains respectively.

Between May and December 2019, MATIC had a positive price trend, rising by 1,241%. The ETH price fell by more than 11%, representing a negative correlation between MATIC and ETH prices over the period.

The ETH value reached $284.22 on February 14, 2020, before falling to $110.61 on March 16, amid the Covid-19-induced market crash. Following a similar trajectory, MATIC’s price first reached $0.02683 on March 7, before falling to $0.008 on March 16.

ETH gained strong momentum over the next few months, ending the year at $737.8, up 567% from its March low. At the end of 2020, the MATIC value was $0.01763, up 120% from marslav.

In 2021, cryptocurrencies became a global phenomenon and the market reached trillions in value. As a result, both MATIC and ETH increased significantly.

The ETH price rose from $730.37 on January 1, 2021 to a record high of $4,891.70 on November 16, 2021, an increase of nearly 570%.

In the same period, MATIC jumped from $0.01781 on January 1 to the record price of $2.92 on December 27, 2021, a phenomenal increase of 16,295%. In accordance CoinCodex, this was also the highest recorded price of MATIC to ETH, as the MATIC price reached its all-time high of 0.001800 ETH. ETH ended the year at $3,682. MATIC closed at $2.52.

This year has been a difficult year for the cryptocurrency markets, as Bitcoin (BTC) and several other coins fell to fresh lows amid the June crypto market collapse. As a result, ETH fell to a 52-week low of $896.11, and MATIC hit an annual low of $0.3228 on June 18.

As of September 14, both ETH and MATIC have recovered a bit. ETH was trading at $1,608, up 80% from the June low. At the same time, MATIC was trading at $0.8573, up 165% from its lows.

In accordance CoinCodex’s MATIC to ETH rate chart, between January and May 2022, the MATIC to ETH rate dropped significantly, indicating ETH’s dominance over MATIC during the period.

However, MATIC regained prominence. As seen in the price chart below, the current exchange rate as of September 14th was 0.000529, up more than 86% from 0.000284 on May 13th.

Past performance is not a reliable indicator of future performance

Polygon’s partnership with Starbucks

In September 2022, Polygon announced that it was partnering with coffee house giant Starbucks (SBUX). Polygon will equip Starbucks with the blockchain technology necessary to develop its recently announced Web3 experience, Starbucks Odyssey.

Starbucks hopes to accelerate “Starbucks Rewards” memberships in new ways by giving them access to immersive coffee experiences, such as exclusive merchandise, artist collaborations and invitations to events.

“Building the Starbucks Odyssey using technology that aligns with our sustainability ambitions and commitments is a top priority,” said Ryan Butz, vice president of loyalty, strategy and marketing for Starbucks.

“We took a very thoughtful and thorough approach when evaluating which blockchain to use, and Polygon’s fast, affordable and carbon-neutral network is the perfect foundation for our first digital community.”

Polygon to become more environmentally friendly after The Merge

Polygon confirmed that Ethereum’s switch to PoS will favor the network’s carbon emissions profile.

The annual carbon emissions for the Polygon network through July 2022 were 60,953.26 tonnes of carbon dioxide equivalent (tCO2e), bringing the chain’s total emissions since inception to 94,782 tCO2e.

Layer 2 protocols such as Polygon increase the complexity of determining carbon footprints since they must take into account emissions from their own network in addition to Layer 1 Ethereum activity.

According to estimates, 99.92% of Polygon’s emissions are related to the chain’s activity on Ethereum’s base layer, leaving 50.13 tCO2e attributable to Polygon’s own PoS network.

The merger is predicted to eliminate 99.91% of Polygon’s carbon emissions from the network, bringing the annual total down to 56.22 tCO2e.

“We believe that responsible operations are just the starting line,” said Stefan Renton, Polygon’s Sustainability Lead.

“We see blockchain and distributed ledger technology supporting and scaling lasting positive impact on the world, helping to create a healthier, fairer and thriving planet.”

MATIC to ETH Forecast: Predictions for 2022 and beyond

The MATIC to ETH price correlation has been negative and inconsistent, unlike the ETH to BTC price correlation, which has been mostly positive. Although Polygon is a scaling alternative to Ethereum, the exchange rates of these two leading coins rarely move in sync.

Interestingly, a group of cryptocurrency miners launched a campaign to prevent Ethereum from approaching integration by splitting the Ethereum network and establishing ETHPoW, an alternative version that can still be mined, called ETHPoW (ETHW).

In addition, the team behind ETHW has announced the plan to launch the mainnet shortly after Ethereum’s merger.

DigitalCoinPrice Algorithm-based MATIC to ETH estimate, as of September 15, had ETH trading at an average price of $2,143.67 in 2022 and $6,567.74 in 2025. The MATIC projection showed the coin averaging $1.13 in 2022 and $3.55 in 2025.

Price prediction expected Ether to trade at an average price of $1,952.15 in 2022, $6,421.33 in 2025 and $39,995.93 by 2030. The forecaster’s predictions for MATIC saw the coin trading at an average price of $0.87 in 2025 and $20.502 into $30.502 and $20.502.

It should be noted that algorithm-based price predictions can be wrong. Forecasts should not be used as a substitute for your own research.

Always do your own due diligence. Your decision to trade should be based on your risk tolerance, experience in the markets and other factors. Cryptocurrencies are high risk and highly volatile. Be sure to check out the latest news, commentary, technical and fundamental analysis. Never trade more money than you can afford to lose.

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