Gold Linked Tokens and Polygon Buck Crypto Downtrend
FTX’s disaster has left the market filled with fear of uncertainty and doubt (FUD), and major cryptocurrencies linked to Sam Bankman-Fried have suffered as a result, but Polygon (MATIC) and gold-backed tokens have outperformed.
The price of Polygon’s MATIC token has increased by 6% in the last week. In comparison, competitor Solana has seen the price of token SOL fall by 46%.
In addition to stablecoins, traders looking for a safe haven have turned to PAX Gold (PAXG) issued by Paxos, which has seen a price increase of 8.2%.
Chris Kline, CEO and co-founder of Bitcoin IRA told Blockworks that MATIC is more hyper-focused and specialized than other cryptocurrencies, which may have allowed it to protect itself during market fluctuations.
“Polygon’s MATIC token is used to pay transaction fees and participate in the network,” Kline said. “Although MATIC, like all other cryptocurrencies, is 60%+ off its 2021 all-time highs.
MATIC’s price has likely been surpassed thanks to the announcement of Polygon’s partnership with Instagram last Thursday, where creators will be able to create their own digital collectibles and sell them on the platform.
While the drama unfolds with FTX and other crypto communities, Polygon developers have been actively working on building products to integrate Blockchain technology with Web2.
In fact, Polygon revealed yesterday that they were working with Disney to develop a proof of concept for exclusive digital collectibles.
Tapping into the creator economy may have been the reason the Polygon token has held up during the cryptocurrency meltdown.
“The value added to the creator economy is unparalleled, and defending verifiable digital ownership on a platform with such reach will help us further our goal of bringing the next billion users to Web3,” Sandeep Nailwal, co-founder of Polygon so in a tweet.
This sentiment is shared by Harsh Rajat, CEO at Push Protocol, who told Blockworks “the reason the price of MATIC has trended upwards and is likely to continue to do so is because the number of wallet addresses continues to do so as well.”
Adding that “the number of unique wallet addresses is the simplest indicator of the health and growth of a network, and Polygon is clearly thriving as more addresses are added every day despite a market slowdown.”
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Bessie Liu
Blockwork
Journalist
