This popular crypto could double in value in 2023

In the months leading up to The Merge, investors began looking for indirect ways to profit from this technology upgrade of Ethereum (ETH -4.12%). They naturally focused on Polygon (MATIC 2.11%), the premier Layer 2 scaling solution for Ethereum. If The Merge was going to make Ethereum more valuable than ever, the thinking went, then it only made sense that it would increase the value of Polygon as well. Over the summer, Polygon enjoyed a mini-boom when it tripled in value in just two months.

While some of the hype surrounding The Merge has cooled, Polygon continues to be hot. Still trading at less than $1, there is a strong case for gains as investors begin to price the latest developments.

New NFT innovations

The biggest news for Polygon lately has been the announcement of a new loyalty program for Starbucks (SBUX -2.41%) based on non-fungible tokens (NFT). The new Starbucks loyalty program plans to go far beyond the old “swipe your card 10 times and you get a free coffee” loyalty program. Instead, it could mean participating in metaverse experiences or collecting unique artwork every time you visit a Starbucks store. You won’t need to show proof of punch to redeem rewards because everything will be digitally recorded on the Polygon blockchain.

Image source: Getty Images.

Starbucks loyalty program is an example of how cryptocurrencies like Polygon continue to innovate on the concept of NFT. In the first iteration, NFTs were simply digital artworks that you could buy and sell. But cryptos like Polygon have figured out how to add a layer of utility to every NFT. In this case, NFTs are integrated into a customer loyalty program.

New Web3 innovations

But this development with NFTs may only scratch the surface of what is possible with Polygon. According to Polygon, The Merge could bring 1 billion users into a decentralized Web3. Ethereum is already the market leader in areas such as blockchain gaming and the metaverse, so it makes sense that Polygon has been able to leverage this success to attract new Web3 projects. If the 1 billion figure is accurate, then it suggests a much larger possibility than many have previously considered.

In a recent interview, Polygon co-founder Sandeep Nailwal hinted that other partnerships outside of Starbucks were on the way, including deals with Meta (META -2.72%) and Disney (HAZE -2.86%). Polygon is already part of Disney’s 2022 Accelerator program, so this partnership could prove particularly important for creating new Web3 experiences.

Polygon remains undervalued

Can polygon actually double in value? At the current price of $0.74, Polygon is still well below its record high of $2.92. Even if it doubles in price, Polygon will still trade nearly 50% lower than its all-time high less than 12 months ago.

In the last two years, it has been fashionable in crypto circles to talk about upcoming blockchains that have the potential to become an “Ethereum killer”. However, according to Polygon’s Nailwal, “ETH is the ETH killer.” In other words, the new and improved Ethereum 2.0 resulting from The Merge is “the next Ethereum” and there’s no need to look anywhere else. If that is indeed the case, the future looks bright for Polygon. That means Polygon can continue to piggyback on the success of Ethereum.

There is a lot going right for Polygon and I am very encouraged by all the innovation happening in the Polygon ecosystem. It is difficult to understand why the price of Polygon is still in the sub-$1 range. Based on all the developments in NFTs and Web3, Polygon seems to be a screaming buy. As long as Ethereum does not show any negative effects from The Merge, I am convinced that Polygon will double in value in the next 12 months.