Recently, there has been some strong volatility in the crypto markets. Due to regulation woes and the general macroeconomic environment, investors have been prudent when it comes to crypto. Although there’s still some uncertainty, Bitcoin has been edging upwards in price and is reaching the $30,000 threshold again.
With increased volatility comes the opportunity for high profits with some established projects. Algorand and Polygon have been performing admirably in the bear market and have set themselves up for growth in the next bull run.
We will provide you with a MATIC vs ALGO comparison and their possible future price action.
Use Case
Algorand (ALGO) is a layer 1 smart contract-capable network. It aims to solve the blockchain trilemma of scalability, decentralization, and security. To achieve this, the team has created the PureProof of Stake (PPoS) consensus, which provides high throughput while conserving a decentralized network of validators.
It has a broad variety of use cases. Developers can deploy highly scalable dApps that allow users to participate in the Web3 revolution.
Polygon (MATIC) is a layer 2 scaling solution for Ethereum that aims to increase the usability of the original smart contract network. Originally, Polygon worked as a side chain for Ethereum, using optimistic rollups. In this environment, users can bridge out Ethereum-based assets onto a much cheaper and faster network.
Recently, the Polygon team released the ZkEVM bridge, a highly scalable solution using zero-knowledge proofs. It allows all transactions to be executed off-chain and then rolled up into a single proof, increasing Ethereum’s usability. Hurry up to make your KLAY to MATIC exchange and enjoy all the perks of the Polygon network.
Top Technology
Both Algorand and Polygon rely on proof of stake consensus, where validators create blocks. Users can stake their ALGO or MATIC tokens to secure the network and receive rewards for their service.
The difference is that Algorand is a layer 1 blockchain, which means that it aims to be a direct competitor to Ethereum and its peers. Polygon, on the other hand, aims to synergize and improve Ethereum in every way by providing cheaper and faster transactions for Ethereum assets.
However, Algorand has failed to attract significant amounts of liquidity on the chain. To solve this, the team is building a trustless bridge between Ethereum and Algorand, which should work similarly to Polygon’s sidechain. That said, Polygon conserves the advantage thanks to its novel ZkEVM chain and zero-knowledge proofs.
Marketing Set
Both ALGO and MATIC went live on the markets in 2019, but have had quite different historical price actions. Although ALGO managed some decent growth and peaked in the bull market of 2021, the price has significantly retraced. MATIC on the other hand, performed admirably in the bear market and conserved a lot of its bull market value.
Currently, ALGO is trading around $0.18 and MATIC around $1.
MATIC Price Prediction
For MATIC, experts around the internet provide some seriously bullish scenarios. For instance, priceprediction.net provides us with a price of $3.32 for 2025, a 3.3x increase from the current level. In the long term, they even forecast a maximum price of $23.44 for MATIC, making it quite an interesting investment.
ALGO Price Forecast
Priceprediction.net provides an even more positive outcome for ALGO. It hopes to see the token reach at least $0.61 in 2025, which is a similar growth factor to its MATIC prediction.
In the long term, their analysts provide a forecast of $3.94 per token in 2030.
MATIC vs ALGO: Conclusion
Polygon and Algorand are two promising projects, albeit with different applications. Where ALGO competes with ETH, MATIC synergizes with the #1 smart contract platform. Moreover, Polygon has managed to retain the edge regarding adoption, user onboarding, as well as dApp deployment. This has allowed the project to reach the top 10 by market cap and rest comfortably in this position.
Finally, we should note Polygon’s partnerships with high-profile companies like Reddit, Disney, Starbucks, and Adidas. This should provide it with even more growth potential going forward.