Bloomberg Intelligence has released its official cryptocurrency forecast for the month of February. It says that Polygon (MATIC) will be used by a lot of people and predicts how Ethereum will do compared to Bitcoin in the future.
Polygon, a layer-2 network meant to enable crypto projects and scale Ethereum transactions, is discussed in the new paper.
In the entire global blockchain economy, Polygon provides the third-largest environment for decentralised applications (dApps). Aave and Uniswap, two of the most well-known DeFi dApps on Ethereum, have moved to Polygon and are being developed. It has 359 dApps, which is more than three times of its nearest L2 competitor and half that of Ethereum. Furthermore, the network has more developers than its nearest alternative L1 competitors, Avalanche and Fantom.”
The survey also highlighted Polygon’s growing popularity among mainstream corporate behemoths such as Nike, Disney, Starbucks, Coca-Cola, Meta, and Reddit.
“According to Polygon’s recent brand-name deals, this year might mark the start of the broad use of NFT.” “The network’s active user base has skyrocketed as a result of numerous successful corporate alliances that the network’s founder, Polygon Technology, secured”.
Bloomberg Intelligence also examines the crypto markets as a whole, stating that this is likely to be the first time Bitcoin (BTC), Ethereum (ETH), and altcoins have had to deal with a worldwide recession.
“Cryptos may be going through their first real recession, which typically entails declining asset values and rising volatility. The previous severe US economic contraction, the financial crisis, resulted in the birth of Bitcoin, and the upcoming economic reset could be a similar “watershed moment”. “A critical question is how much pricing pain there will be before longer-term gains return”.
In terms of Bitcoin and Ethereum in particular, Bloomberg Intelligence predicts that, in the long run, ETH is on a clear road towards resuming a long-term uptrend against BTC.
“The increasing trend in the Ethereum/Bitcoin cross rate began in 2019 and showed little indication of abating”. Our perspective on the cross between the No. 2 crypto and the No. 1 bitcoin is that it is becoming the digital equivalent of gold in a world that is moving that way. The graph depicts the consistent Ethereum/Bitcoin rate in the Bloomberg Galaxy Crypto Index since the peak in 2021. That signals a move into the mainstream, and once the dust settles from some risk asset regression, Ethereum is more likely to resume doing what it’s been doing: outperforming.
