Analyst Issues Polygon Warning, Says MATIC Likely To Disappoint in the Next Bull Market Heres Why

A well-known cryptocurrency analyst has warned about Polygon (MATIC), a layer 2 scaling solution for Ethereum (ETH).

Anonymous host of InvestAnswers To tell His 441,000 YouTube subscribers say Polygon faces a “killer row” in the Layer 2 competition, specifically referring to Arbitrum as a “major competitor.”

He also said he is concerned that Polygon is paying non-fungible token (NFT) projects to use its solution. Additionally, the host says he believes polygon speed, inflation, and concentrations of “heavy” whales are also all red flags.

“yes, [Polygon] It did very well in a bear market, but what usually works in a bear market doesn’t work in a bull market. This is also true from history: see Chainlink in 2018, see it in 2022. This is a very good analogue. “

Analysts say they have swapped 65% of MATIC to Ethereum competitor Solana (SOL).

MATIC is trading at $1.22 at the time of writing. The 10th largest crypto asset by market capitalization has fallen more than 4% over the past 24 hours, but has gained nearly 8% over the past month. It is down more than 58% from its all-time high of $2.92 set in December 2021.

Last week, Polygon Labs announced It had laid off about 100 employees, 20% of the project’s workforce.

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