Polygon Aims to Unlock $30 Trillion in Real World Assets: Is a MATIC Price Surge Imminent?
Polygon eyes the RWAs market, but the price of MATIC at a multi-year low. Could this be a good accumulation opportunity?
Key Takeaways
- Tokenized real-world assets present a $30 trillion opportunity.
- MATIC hit a multi-year low, signaling a potential accumulation phase.
- A breakout above $1 could signal MATIC’s next bull phase.
In a recent interview, Colin Butler, Polygon’s global head of institutional capital, emphasized the significant growth potential of tokenized real-world assets (RWAs), projecting a global market opportunity of $30 trillion. Polygon, known for its Ethereum scaling solutions, could be positioned at the forefront of this market.
Meanwhile, the price of MATIC reached a multi-year low slightly above $0.30, last seen in June 2022. Could this be the perfect timing to accumulate MATIC ahead of a major rally?
Polygon and RWAs
Colin Butler explained that high-net-worth individuals, particularly those with net worths between $1 million and $30 million, will likely increase their investments in alternative assets as tokenization enhances the liquidity and accessibility of previously illiquid assets.
Around $11.5 billion in tokenized RWAs are currently held on blockchain networks, excluding stablecoins, with notable investments in money market funds like BlackRock’s USD Institutional Digital Liquidity Fund and Franklin OnChain U.S. Government Money Fund.
Butler noted that about $9 billion has been invested in tokenized private credit, with expectations for substantial growth as major private equity firms, such as KKR and Hamilton Lane, continue to enter the space. He also highlighted that digital finance leaders increasingly look into tokenized assets, which could lead to significant capital inflows in this sector.
“The big examples so far are KKR, which was the first on Avalanche, and then Hamilton Lane. Brevan Howard was the first big hedge fund example, and these are all tokenized on Polygon,”
MATIC Price Analysis
On March 13, MATIC surged to a yearly high of $1.30, representing an 85% increase from its low of $0.70 on January 24. However, by April 13, the price had declined below $0.60. This drop, while significant, was relatively modest compared to the sharp rally that began in mid-September of the previous year, which eventually led to the March peak.
By June 14, MATIC revisited its April low, dipping below its descending trendline, and continued to trade lower, resulting in a $0.33 low on Aug. 5. This low brought MATIC back to its horizontal support zone. It could be the final low in the larger bear cycle from January 2022.
The formation of a descending triangle since the all-time high could be broken on the next uptrend, signaling the potential beginning of a new bull phase. If that happens, we first need to see MATIC regaining values over $1, followed by a higher low above $0.65.
Should the price action follow this pathway, MATIC is on an upward trajectory to $2 and beyond for the beginning of 2025.
