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The DeFi Chronicle: Why Matic deserves a much higher valuation
Smart contract platforms have been drastically outperforming the crypto market during this bull run. The proliferation of ecosystems, dapps, games, and NFTs have dramatically increased the utility and use-cases of these different platforms.
Ethereum stands above its competitors in market cap and TVL (total value locked), yet competing smart contract platforms like Solana, Avalanche, and Binance Smart Chain, have outperformed ETH thus far in the cycle. The most undervalued smart contract platform today is Polygon, whose native token Matic has trounced practically the entire crypto market, should still be viewed as undervalued. Here are the reasons why.
Valuing crypto assets is extremely challenging. We have seen meme coins that serve no real use balloon into the top 10 in valuation. Other chains like Polkadot and Cardano have high valuations but are primarily based on speculation as virtually nothing runs on these platforms today.
Then, we have all of the incentive funds drawing more investors and programmers into certain networks. Fantom, Avalanche, Binance, and Polygon have seen dramatic price appreciation in their native tokens after releasing incentives ranging from $100 million up to $1 billion for programmers and investors.
