Bloomberg Intelligence has released its official crypto outlook for the month of February, citing massive mainstream adoption of Polygon (MATIC) and forecasting the future of Ethereum’s performance relative to Bitcoin.
The new report covers the rise of Polygon, which is a layer-2 network designed to power crypto projects and scale Ethereum transactions.
“Of the entire worldwide blockchain economy, Polygon has the third-largest ecosystem for decentralized apps (dApps). Many of the most popular DeFi dApps on Ethereum, including Aave and Uniswap, have migrated over and are being developed on Polygon. Its 359 dApps is more than three times that of its closest L2 rival and half that of Ethereum. Additionally, the network has more developers than its closest alternative L1 rivals, Avalanche and Fantom.”
The report also highlights Polygon’s growing adoption by mainstream corporate giants including Nike, Disney, Starbucks, Coca-Cola, Meta and Reddit.
“Based on Polygon’s string of brand-name partnerships in 2H22, this year could be the year of mainstream NFT adoption. The explosion in active users on the network stemmed from several blockbuster corporate partnerships struck by the company behind the network, Polygon Technology.”
Bloomberg Intelligence also analyzes the crypto markets as a whole, noting that this will likely be the first time that Bitcoin (BTC), Ethereum (ETH) and altcoins have to fight through a global recession.
“Cryptos may be facing their first real recession, which typically means lower asset prices and higher volatility. The last significant US economic contraction, the financial crisis, led to the birth of Bitcoin, and the possible coming economic reset may mark similar milestones. A key question is how much price pain will there be before longer-term gains resume.”
As for Bitcoin and Ethereum specifically, Bloomberg Intelligence forecasts that in the long run, ETH is on a definitive path toward resuming a long-term uptrend against BTC.
“The upward trajectory in the Ethereum/Bitcoin cross rate started in 2019 and shows few signs of abating. A resting bull market is our take on the cross between the No. 2 crypto and No. 1 Bitcoin, which is becoming a digital version of gold in a world going that way. The graphic shows the steady Ethereum/Bitcoin rate since the 2021 peak in the Bloomberg Galaxy Crypto Index. That suggests migration into the mainstream, and once the dust settles from some reversion in risk assets, Ethereum is more likely to resume doing what it’s been doing: outperforming.”
You can check out the full report here.
