Polygon A Market Anomaly Amid FTX Fallout
MATIC, the native cryptocurrency of the Polygon blockchain, has overall risen in value despite downward pressure in the markets spurred by the collapse of FTX. Major brand adoption, and an increasing number of wallets added to Polygon have earned market’s trust, despite the recent downtrend.
FTX bankruptcy
The news of FTX's bankruptcy sent shockwaves through the crypto community, yet Polygon is the first cryptocurrency to recover after the market downturn in the wake of the FTX bankruptcy. The price of MATIC surged by over 1% following the announcement.
The FTX scandal has scarred many crypto enterprises and will no doubt continue to contaminate investment firms and countless web3 projects. To illustrate the impact the FTX bankruptcy has had, the total cryptocurrency market cap was about $1 trillion on Tuesday, Nov 8. By Wednesday morning it had fallen to $786 billion.
MATIC price action
MATIC rose from $0.78 on Nov. 9 to $1.14 on Nov. 10, the same day FTX filed for bankruptcy. By Nov. 13 it had dropped in the overall market downturn to $0.85 on Nov. 14 before rising again to $0.96 at press time.
Between Oct. 30 - Nov. 11 only seven blockchains saw an increase in their total value locked (TVL), an indicator investors use to measure the strength of liquid deposits into a DeFi protocol. Of the seven, Polygon enjoyed the largest gains at 17.3%.
MATIC price action Nov 9-16, 2022. Source: CoinMarketCap
Bear market, bull strength
Unwittingly, MATIC entered the post-FTX bankruptcy market meltdown with some of the strongest numbers in the entire crypto market. Charts for MATIC’s price in October alone rose 23%, putting the coin predominantly in the green for almost the entire month.
MATIC price action Oct 1-31, 2022. Source: CoinMarketCap.
MATIC price strength can be attributed to its singular focus to harness the power of the Ethereum blockchain and create market-ready tools and other services that are already in demand.
Moreover, the price hike has not been followed up with major market corrections, signaling that investors believe in the strength of Polygon’s team, roadmap, and project execution.
Major brand partnerships
Polygon has scored several brand name partnerships in its bid to bring a sustainable web3 infrastructure to mainstream users. It has made a splash in the related markets by providing customers with an easier introduction into the possibilities of web3, without the intimidation and confusion that often accompanies blockchain technology.
Polygon has partnered with Reddit, Walt Disney, the NFL, Starbucks, Meta, Nike and more. The Nike project in particular has seen considerable success in recent months, with over 190 million new wallet addresses added to its network in November alone.
Wallet addresses increasing
In May of 2022, Polygon MATIC witnessed an impressive rise in wallet addresses as they surged from 20,000 to 113,890. The price action further showed signs of strength as the price began to rally higher during this period.
Alongside this trend, whale addresses also increased by 10%, signaling more capital allocation into the network and potentially driving further price appreciation.
Overall, Polygon is showing signs of promise when it comes to price action, wallet addresses, whale activity, and corporate brand partnerships. Given these three robust factors, in addition to a talented, experienced team, it is no wonder that Polygon has done so well – not only in the aftermath of the FTX collapse, but all year long.
