Bloomberg Reveals Crypto Outlook – Highlights Explosive Polygon (MATIC) Adoption, Forecasts Ethereum Will Outpace Bitcoin
Bloomberg Intelligence has released its official crypto outlook for the month of February, citing massive mainstream adoption of Polygon (MATIC) and forecasting the future of Ethereum’s performance relative to Bitcoin.
The new report covers the emergence of Polygon, which is a layer-2 network designed to power crypto projects and scale Ethereum transactions.
“Out of the entire global blockchain economy, Polygon has the third largest decentralized apps (dApps) ecosystem. Many of the most popular DeFi dApps on Ethereum, including Aave and Uniswap, have migrated over and are being developed on Polygon. Its 359 dApps are more than three times as large as its closest L2 rival and half of Ethereum, and the network has more developers than its closest alternative L1 rivals, Avalanche and Fantom.
The report also highlights Polygon’s growing use by mainstream corporate giants including Nike, Disney, Starbucks, Coca-Cola, Meta and Reddit.
“Based on Polygon’s string of brand name partnerships in 2H22, this year could be the year of mainstream NFT adoption. The explosion in active users on the network stemmed from several major corporate partnerships struck by the company behind the network, Polygon Technology.
Bloomberg Intelligence also analyzes the crypto markets as a whole, noting that this is likely to be the first time that Bitcoin (BTC), Ethereum (ETH) and altcoins will have to battle through a global recession.
“Crypto may be facing its first real recession, which usually means lower asset prices and higher volatility. The last significant economic downturn in the United States, the financial crisis, led to the birth of Bitcoin, and the possible upcoming economic reset may mark similar milestones. A key question is where there will be a lot of price pain before long-term gains resume.”
Regarding Bitcoin and Ethereum specifically, Bloomberg Intelligence predicts that in the long term, ETH is on a definitive path to resuming a long-term uptrend against BTC.
“The upward trajectory of the Ethereum/Bitcoin cross rate started in 2019 and shows little sign of abating. A dormant bull market is our view of the cross between the No. 2 crypto and the No. 1 Bitcoin, which is becoming a digital version of gold in a world going that way. The chart shows the flat Ethereum/Bitcoin exchange rate since the 2021 peak of the Bloomberg Galaxy Crypto Index. It suggests migration to the mainstream, and when the dust settles from some risk asset regression, there is more Ethereum is likely to continue to do what it has been doing: outperform.”
You can check out the full report here.
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