Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
On 19 July, Polygon [MATIC] Labs presented a proposal regarding restructuring of the governance structure for its expansion as part of the Polygon 2.0 plan.
MATIC surged more than 20% following the news of Ripple [XRP] securing a partial victory in its legal battle with the U.S. Securities and Exchange Commission (SEC) on 13 July.
A group of Polygon founders and researchers recently proposed a token upgrade that would replace the network’s MATIC token with POL in a move that lets POL function as a single token for all Polygon-based networks. It also led to a modest price rise of MATIC.
But the past week has seen its value plummet to $0.7649.
MATIC is the 11th largest cryptocurrency, with a market capitalization of $7.12 billion.
Polygon is an L-2 solution for Ethereum [ETH], one 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 had some insightful thoughts about the future of Polygon, its position in the DeFi ecosystem, zkEVM, etc.
Read Polygon’s [MATIC] Price Prediction 2023-24
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
In addition to this, 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,
“In conclusion, 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 a 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 $0.7649. It registered a fall of nearly 9% within a week. Upon asking about MATIC’s price action, the re-educated version of ChatGPT showed immense confidence in MATIC and mentioned that it could turn bullish soon.
ChatGPT showed confidence in Polygon’s technological prowess and growing ecosystem. The winds of bullishness may blow Polygon’s way in the near future, carrying it to majestic peaks. Yet, as with any investment, caution and careful analysis should be your trusted companions.
Source: ChatGPT
When I questioned the bot further, ChatGPT projected MATIC’s price to hit $10. Nonetheless, nothing can be expected with utmost certainty and investors are best advised to invest time in extensive research and studying expert views.
Source: ChatGPT
How much are 1,10,100 MATICs worth today?
A closer look at MATIC’s daily chart
Since Q4 2022, the number of daily users of Polygon increased dramatically and surpassed that of daily users of Ethereum.
Since MATIC is one of the most valuable crypto coins, it has naturally drawn a lot of investors. Marketers and investors have always been concerned about Polygon’s price prediction.
MATIC has not been performing well for the past few days. Though its price surged substantially immediately following the SEC-Ripple judgement, it fell the next day. At press time, it was trading at $0.7649.
Its Relative Strength Index (RSI) and Money Flow Index (MFI) rested significantly below the neutral 50-mark. Its On Balance Volume (OBV) also showed a drastic decline.
In short, the bears seem to be pulling down the token in the short-term.
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.
Conclusion
Chatting with ChatGPT about Polygon and its presence in DeFi gave a clear indication that the AI chatbot was quite confident in Polygon and its future.
Though ChatGPT’s predictions about MATIC’s price action are bullish, its on-chart metrics show a dismal picture.
