The cryptocurrency sector is still in its infancy and prone to significant price fluctuations. Various cryptocurrencies hit all-time highs in the later parts of 2021, only to be wiped out of the gains in 2022. Experts believe further fall is on the cards before serious recovery can be seen. The price swings, however, have not been able to reduce the interest for cryptocurrencies whatsoever. 

The matic network, currently known as the Polygon, is a solution in cryptocurrency. The network seeks to boost the speed of transactions on blockchain networks and reduce cost and complexity. This scaling solution is a 2-layer network. The network has many facets and can be used to create better-interconnected networks. 

The future of the MATIC network and cryptocurrencies as a whole is dependent on a lot of factors. These include regulation, institutional intent, use of NFTs, etc. Below we discuss these factors and look into the future of MATIC networks and cryptocurrencies.

• Regulations on cryptocurrencies are still not established. The whole process is decentralized and, as things stand, will continue to be so. Various governments are trying to find ways to regulate these investment instruments to make them more appealing to investors and keep cybercriminals at bay. The volatility of cryptocurrencies can also be attributed to the fact that it is not regulated. Overall, regulations in the right amount and extent can help the cryptocurrency market become a much better investment instrument for most investors.
  
  
• Institutional interest in cryptocurrency and MATIC network or Polygon can be one of the vital factors in the evolution of the technology and the widescale acceptance of the same. Investment in cryptocurrencies from some leading institutions can be considered one of the critical factors. It will help in shaping the future of these investment instruments. Apart from institutional investments, the acceptance by fintech companies is essential. If fintech companies allow cryptocurrencies as a mode of payment on their websites, the interest in cryptocurrencies will grow further, strengthing its future. Indeed payments by using cryptocurrencies are a farfetched idea at this moment. We are still well in the infancy stage of cryptocurrency to consider it a mode of exchange, but acceptance by institutions will change its outlook.
  
  
• NFTs or non-fungible tokens are not new and have been around since 2014. It languished in the shadows for years until, in 2021, it became a thing of the mainstream. NFTs work on the principles of blockchain and are novel in character. They represent the ownership of many intangible items that are considered irreplicable. The sales of NFTs have been on the rise and are hitting record levels. It is understandable for a new thing to create new records in sales as it gets accepted. However, the value has gone on to billions of dollars. NFTs are linked to the cryptomarket. Due to the fall in crypto value in recent months, many NFTs have also diminished in worth. NFT is considered the new way of monetization, especially for creators. The risk is inherent to this form of investment as it is linked with the cryptocurrency market.
  
  
• DeFi or Decentralized Finance is a word that goes hand in glove with cryptocurrencies. It is at the heart of blockchain and cryptocurrencies. In traditional financial transactions, a bank or a financial agency acts as an intermediary for the transaction. DeFi replaces this with software that uses smart contracts. Therefore no intermediary is needed. The future of cryptocurrencies and MATIC networks is heavily dependent on the development of Decentralized Finance. DeFi will ensure total control over the assets of an investor. DeFi, however, is a very new concept. The potential risks to rewards are yet to be assessed adequately. DeFi is a complete opposite of a regulated financial model. Thus, with the increase in regulations over the cryptocurrency market, the impact of DeFi is bound to reduce.
  

The world of MATIC and cryptocurrencies as a whole is still very speculative. There is not much history to base the future assumptions upon. As the whole system is decentralized, fundamentals are impossible to ascertain. Technical understanding is also severely limited due to the new nature of the products. The current market interest and overall outlook remain positive. We can definitely say that as things stand, the MATIC network does seem to have a bright future.