I grilled ChatGPT about Polygon’s [MATIC] price action, but it left me intrigued
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Polygon [MATIC] is one of the most popular cryptocurrencies in the world. At press time, it had a market capitalization of more than $10 billion, making it 9th largest crypto by market cap.
It is a layer 2 scaling solution for Ethereum [ETH], one that aims to address the network’s scalability issues with a primary focus on the DeFi space. The blockchain recently stole the limelight after it launched its much-awaited zkEVM mainnet.
?? Fast finality
?? Leading EVM-equivalent zkEVM
?? Completely open-source
— Polygon (Labs) (@0xPolygonLabs) March 27, 2023
As Polygon continues to rise above others in the DeFi space, ChatGPT had some insightful thoughts about the future of Polygon, its position in the DeFi ecosystem, zkEVM, etc.
Read Polygon’s [MATIC] Price Prediction 2023-24
ChatGPT is confident in Polygon’s zkEVM
For starters, Polygon zkEVM is a zero-knowledge scaling solution that is equivalent to the Ethereum Virtual Machine. The zkEVM takes advantage of ZK proofs’ ability to reduce transaction fees and increase throughput while retaining Ethereum’s security. According to Polygon, the zkEVM will play a major role in increasing Ethereum’s scalability over the coming years.
When I questioned ChatGPT regarding its thoughts about zkEVM, the AI bot quickly highlighted the solution’s notable features while also pointing out a few key benefits. The bot also added that as L2 solutions continue to grow, it will be interesting to see how zkEVM competes with others.
In addition to this, when asked whether zkEVM would have a broader impact on Polygon, ChatGPT responded confidently, stating,
“Overall, I believe that zkEVM has the potential to significantly improve the scalability, interoperability, and security of the Polygon network, which could help to attract more users and use cases to the network and position it as a leading player in the DeFi ecosystem.”
zkEVM vs. zkSync Era
While Polygon launched its ZK, it could not become the first L2 scaling solution as the title was taken by zkSync. The solution went live just three days before the launch of Polygon’s zkEVM.
gm zkEVM! ??
zkSync Era Mainnet Alpha is now open to all users.
Developers, projects, and users can now experience the power of zkEVM.
Read more: https://t.co/pL5PuZqanu
— zkSync ∎ (@zksync) March 24, 2023
Upon asking ChatGPT about which one of them was better, it was hesitant to deliver a crisp response. The AI bot stated that the choice between Polygon zkEVM and zkSync may depend on multiple factors, like developer familiarity with programming languages, specific use cases, and project goals.
Thoughts about Polygon’s competitor, Solana
Another main player in the DeFi space is Solana [SOL], which is also a direct competitor of Polygon. However, Solana’s reliability has always been in question as it has fallen victim to multiple outages over the years.
The latest one happened in February when the Solana network experienced a forking event that throttled users’ ability to execute transactions. However, it was fixed later.
Approximately 15 minutes ago the Solana community successfully resumed the cluster – engineers will continue to monitor network performance as network operators are restored.
— Solana Status (@SolanaStatus) February 26, 2023
When asked about whether Solana can pose a threat to Polygon in the DeFi space, ChatGPT responded by highlighting Solana’s achievements and the possibility of both networks coexisting to serve different use cases.
“In conclusion, while Solana’s high scalability and throughput make it an attractive option for DeFi projects, it’s difficult to say whether it poses a direct threat to Polygon.”
However, to get a better opinionated response from the AI friend, I tried to reeducate it by “Jailbreaking.” It was interesting to see a different response from ChatGPT after it was jailbroken. In the new response, it did mention that Solana can become a major competitor for Polygon in the coming years.
Polygon and its future..
Apart from zkEVM, Polygon also has quite a few projects in the pipeline, which too have the potential to fuel growth in the future. For instance, Polygon Miden. It will be the first decentralized rollup that leverages execution proofs of concurrent, local transactions. Miden will allow anyone to execute a transaction and create a STARK-proof for the network.
However, ChatGPT’s knowledge regarding Miden was not adeqaute. Therefore, its reply when asked about the possible impact of Miden on Polygon was not on par.
ChatGPT’s predictions for MATIC
At press time, Polygon’s native token MATIC was down by nearly 3% in the last 24 hours. The crypto was trading at $1.12. Upon asking about MATIC’s price action, the re-educated version of ChatGPT showed immense confidence in MATIC and mentioned that it could turn bullish soon.
It stated that Polygon’s recent partnerships have already sparked interest and excitement among investors and traders. This can reflect on MATIC’s chart in the coming days.
When I questioned the bot further, it did give me a number which looked very ambitious. As per the jailbroken AI bot, it expects MATIC to cross the $50-mark by the end of this year. The prediction made by ChatGPT, according to me, was a long shot and not very likely to translate into reality.
Nonetheless, it did mention the volatile nature of the crypto-market. So, nothing can be expected with utmost certainty and investors are best advised to do their own research.
How much are 1,10,100 MATICs worth today
A closer look at MATIC’s daily chart
Unlike ChatGPT’s predictions, things were not looking good for MATIC at press time. Most of the market indicators were in the bears’ favor and suggested a drop in price. For example, MATIC’s Chaikin Money Flow (CMF) was considerably below the neutral mark of 0. The Relative Strength Index (RSI) also registered a slight downtick, which was also a development in the sellers’ favor.
As per the Exponential Moving Average (EMA) Ribbon, there was an on-going tussle between the bulls and the bears. Considering the other indicators, it is likely that the bears will emerge victorious. The Bollinger Bands suggested that MATIC’s price was entering a less volatile zone, minimizing the chances of an unprecedented price hike in the near term.
Polygon and DeFi, a match made in heaven?
As Polygon continues to expand and grow its DeFi ecosystem, one thing can be said with certainty that the blockchain has a long way to go and many more milestones to achieve over the years to come.
So I thought of asking ChatGPT the most valuable question: Polygon and DeFi, a match made in heaven?
Without differing, both versions of the AI bot responded positively to the question. The re-educated version even drew comparisons with world renowned “DUOs” like Peanut Butter and Jelly or Batman and Robin, which was interesting to see.
Chatting with ChatGPT about Polygon and its presence in DeFi gave a clear indication that the AI chatbot was highly confident in Polygon and its future. ChatGPT’s response to the questions remained bullish throughout the conversation, with some even being highly ambitious.
Nonetheless, considering Polygon’s current state, only time will tell us whether ChatGPT’s predictions and views reflect on paper.