This popular crypto could double in value in 2023 – Nasdaq | Jewelry Dukan

In the months leading up to The Merge, investors looked for indirect ways to capitalize on this technology upgrade ether (CRYPT: ETH). They naturally focused on polygon (CRYPTO:MATIC), the leading Layer 2 scaling solution for Ethereum. If The Merge made Ethereum more valuable than ever, the reasoning went, then it only makes sense that it would also increase Polygon’s value. Over the summer, Polygon experienced a mini boom, trebling in value in just two months.

While some of the hype surrounding The Merge has died down, Polygon continues to be hot. Still trading at less than $1, there are strong reasons for gains as investors start to price in recent developments.

New NFT innovations

The biggest news for Polygon recently was the announcement of a new loyalty program for Starbucks (NASDAQ:SBUX) based on non-fungible tokens (NFTs). The new Starbucks loyalty program aims to go well beyond the old “punch your card 10 times and get a free coffee” loyalty program. Instead, it could mean participating in Metaverse experiences or collecting unique artworks every time you visit a Starbucks store. You don’t need to show proof of punch to redeem rewards as everything is digitally recorded on the Polygon blockchain.

Image source: Getty Images.

Starbucks’ loyalty program is an example of how cryptocurrencies like Polygon continue to innovate the concept of NFT. In the first iteration, NFTs were simply digital works of art that you could buy and sell. But cryptos like Polygon figured out how to add a useful layer to any NFT. In this case, NFTs are integrated into a customer loyalty program.

New Web3 innovations

But these developments with NFTs may only scratch the surface of what’s possible with Polygon. According to Polygon, The Merge could bring 1 billion users to a decentralized web3. Ethereum is already a leader in areas like blockchain gaming and metaverse, so it makes sense that Polygon could use that success to attract new Web3 projects. If the figure of 1 billion is correct, it suggests a much greater chance than many previously considered.

In a recent interview, Sandeep Nailwal, co-founder of Polygon, hinted that other partnerships beyond Starbucks are on the way, including deals with Meta (NASDAQ:META) and Disney (NYSE:DIS). Polygon is already part of Disney’s Accelerator program for 2022, so this partnership could prove particularly important in creating new Web3 experiences.

Polygon remains undervalued

Can Polygon actually double its value? At its current price of $0.74, Polygon is still well below its all-time high of $2.92. Even if the price were to double, Polygon would still be trading nearly 50% lower than its all-time high, set less than 12 months ago.

For the past two years, it has been fashionable in crypto circles to talk about emerging blockchains that have the potential to be an “Ethereum killer.” According to Polygon’s Nailwal, “ETH is the ETH killer.” In other words, the new and improved Ethereum 2.0 that emerged from The Merge is “the next Ethereum” and there is no need to look elsewhere. If that’s indeed the case, then the future for Polygon looks bright. This means that Polygon can continue to build on the success of Ethereum.

Lots of things are going right at Polygon, and I’m very encouraged by all the innovation that’s happening in the Polygon ecosystem. It’s hard to understand why Polygon’s price is still in the sub-$1 range. Based on all the developments in NFTs and Web3, Polygon seems like a screaming buy. As long as Ethereum does not show any negative effects from The Merge, I am convinced that Polygon will double in value in the next 12 months.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Dominic Basulto has positions in Ethereum and Polygon. The Motley Fool has positions in and recommends Ethereum, Meta Platforms, Inc., Polygon, Starbucks, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, short January 2024 $155 calls on Walt Disney, and short October 2022 $85 calls on Starbucks. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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