How Polygon is Building Interoperability with Axelar
Near the end of October 2022, Polygon announced a new partnership with Axelar, a business focused on developing cross-chain functionality and interoperability for blockchain networks so that the entirety of web3 can become more connected. The move is the latest in a long line of adoptions of the network which has proven to be one of the most reliable networks in web3.
What is the benefit
The benefits provided by Axelar will help developers and users to transfer funds around various Polygon supernets which are blockchains built onto the Polygon network as a service for developers and entrepreneurs to create their own protocols and businesses.
By incorporating efficient communication between these supernets with Axelar, protocols built onto Polygon will have an easier way of exchanging value and working together to offer a larger range of innovation in the future where separate Polygon Dapps will be able to seamlessly interact with one another.
How does this help the community
This partnership will do a lot to help boost activity on the Polygon network which has already seen a rise in its user base following the massive success of Reddit NFTs which have single-handly kept the momentum of NFTs alive among larger mainstream populations.
Their recent partnership has also helped spur adoption into the network. While Meta is struggling to maintain its status as a key player in tech, its use of Polygon coupled with Axelar’s interoperability could create some interesting possibilities in the future that will help bring the ambitious metaverse project a little closer to reality.
While criticism of the metaverse still exists, and has only gotten worse, improvements in the technology are always beneficial and could help rebuild the company’s reputation.
Polygon’s recovery after FTX crash
One of the most notable aspects of Polygon however, is its resilience after the fall of FTX which suffered a catastrophic collapse following the realization that Alameda was using customer funds as collateral to fuel their FTT tokens.
This has caused a massive panic in the crypto industry which is still suffering from the collapse of other projects from earlier this year including TerraLuna and 3AC; showing us that the summer crypto crash has not ended.
The obvious effect of all this is that prices for various cryptocurrencies are all beginning to drop back down to new lows which were just starting to plateau. Bitcoin dropped to a new 2-year low around $15,000 and Ether went back under $1,200 with both cryptos struggling to recover.
However, Polygon seems to have already righted its ship and returned to similar prices from before FTX’s insolvency. In fact, following Polygon's brief crash which dropped from $1.15 to $0.78 a coin, Polygon has nearly doubled its value in a day by returning to prices above a dollar.
With the entire crypto industry seemingly in a popped bubble, it appears Polygon has come out unscathed and ready to continue growing their decentralized network; and their partnership with Axelar shows they are focused on innovation over profits.
