The cryptocurrency market has branched out into multiple industries. Blockchain tech empowers supply chains, healthcare, decentralized finance, gaming, and much more. This has drawn a huge number of new users, especially after the last bull market in 2021.
To accommodate these new users, we need scalable blockchains that provide low gas costs, a great user experience, and robust infrastructure for deploying decentralized applications. Polygon and Klaytn are two blockchain projects that tick all the boxes and manage to provide future-proof platforms to their users.
In this article, we compare MATIC to KLAY and assess their past and future performances as investment assets. To this end, we will explore some of their fundamentals and analyze recent price action.
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MATIC Performance in 2022
Polygon is the most popular Ethereum scaling solution currently on the market. It gathers as many transactions as the most popular blockchains (like the BNB chain) while allowing Ethereum developers to scale their apps at the same time.
The continuous updates from its team have allowed the MATIC token to perform quite admirably, considering the macro signals we are witnessing. It has outperformed most blue chip tokens in the market and has recently been able to climb to the top 10 cryptocurrencies by market cap. It is a huge accomplishment for a Layer 2 solution.
With significant upgrades to its scaling solutions on the way, we can expect Polygon and its MATIC token to continue to impress us during the bear market.
MATIC Price Prediction for the Next Year
Professional crypto analysts agree with our assessment and provide quite a bullish view on the MATIC token in the next few years. For reference, MATIC is currently trading at $0.8.
For example, Digitalcoinprice.com expect the MATIC token to reach $2.07, just shy of its all-time high. In the longer term, mass adoption of Polygon should push the MATIC price to $3.73 by 2025.
Pricepreditcion.net is a bit more conservative on the upside potential, with a target of $1.42 for 2023. For 2025, the website forecasts a price of $2.70 per MATIC token.
KLAY Performance in 2022
Klaytn is a metaverse-centric blockchain that is aimed at deploying Web3 games, metaverses, and NFTs. To this end, it utilizes a highly scalable IBFT blockchain consensus, providing near-instant block finality and irreversible transactions.
The metaverse craze in 2021 allowed the KLAY token to reach all-time highs of $4.4. However, the 2022 bear market has been less than favorable for this project. At the beginning of the year, KLAY had already dropped to around $1.3 and entered a continuous downtrend.
Currently, the price has reached new lows of around $0.16, making it one of the worst performers of the year.
KLAY Price Prediction for the Next Year
That said, KLAY still has some upside potential, according to crypto analysts. Digitalcoinprice.com provides a target of $0.4 for 2023 and goes as high as forecasting $0.72 for 2025. Priceprediction.net thinks the token could rise to $0.27 in 2023 and $0.55 in 2025.
All in all, the consensus is that there’s some opportunity, but it might be less consequential than investing in MATIC.
Converting MATIC to KLAY: Pros and Cons
Converting MATIC to KLAY could be quite interesting if the metaverse industry regains some of its shine. This could allow KLAY tokens to outperform MATIC. However, considering mass adoption, it remains clear that MATIC might be the better choice for the long term.
All in all, MATIC is the safer long play, while KLAY could be the high-risk, high-reward token.
Polygon and Klaytn are two future-proof blockchains that serve different niches in the industry. MATIC tokens are essential for securing the Polygon chain, and their value rises with the mass adoption of the Polygon network.
KLAY, on the other hand, is required to pay for gas. As more metaverses and games are deployed, demand for KLAY should increase. While you might be tempted to swap ATOM to BNB during the bear market, MATIC to KLAY could prove a more fruitful trade in the long run.