Bloomberg Intelligence has presented its official cryptocurrency projection for February, claiming widespread acceptance of Polygon (MATIC) and anticipating Ethereum’s future performance compared to Bitcoin.
Polygon, a layer-2 network meant to enable crypto projects and scale Ethereum transactions, is discussed in the new paper.
“Polygon offers the third-largest ecosystem for decentralized apps in the global blockchain economy” (dApps). Many of the most popular DeFi dApps on Ethereum, including Aave and Uniswap, have moved to Polygon and are being developed. It has 359 dApps, more than three times that of its nearest L2 competitor and half that of Ethereum. Furthermore, the network has more developers than its closest alternative L1 competitors, Avalanche and Fantom.”
The survey also highlighted Polygon’s rising popularity among major business behemoths such as Nike, Disney, Starbucks, Coca-Cola, Meta, and Reddit.
“Based on Polygon’s streak of brand-name agreements in 2H22, this year might be the year of widespread NFT adoption. In addition, the network’s active user base exploded due to many blockbuster business collaborations negotiated by the network’s creator, Polygon Technology.”
Bloomberg Intelligence also examines the crypto markets, stating that this is likely the first time Bitcoin (BTC), Ethereum (ETH), and altcoins have had a worldwide recession.
“Cryptos may be experiencing their first true recession, which normally entails lower asset values and increased volatility. The previous severe US economic contraction, the financial crisis, resulted in the birth of Bitcoin, and the upcoming economic reset might 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 toward resuming a long-term rally versus BTC.
“The increasing trend in the Ethereum/Bitcoin cross rate began in 2019 and showed little indications of abating. Our perspective on the cross between the No. 2 crypto and the No. 1 Bitcoin is that it is becoming a digital equivalent of gold in a world that is moving that way. The graph depicted the consistent Ethereum/Bitcoin rate in the Bloomberg Galaxy Crypto Index from the high in 2021. That signals a move into the mainstream, and after the dust settles from any risk asset regression, Ethereum is more likely to resume doing what it’s been doing: outperforming.”