FTX’s disaster has caused the market to be filled with fear of uncertainty and doubt (FUD), and major cryptocurrencies related to Sam Bankman-Fried have suffered as a result, but Polygon (MATIC) and tokens backed by gold, have outperformed.
The price of Polygon’s MATIC token has gone up by 6% over the past week. By comparison, it’s competitor, Solana has seen the price of its token SOL dip by 46 %.
In addition to stablecoins, traders looking for a safe haven have turned to PAX Gold (PAXG) issued by Paxos, which has seen an 8.2% price increase.
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 on the network,” Kline said. “Although MATIC, like all other cryptocurrencies, is 60%+ lower than its all-time highs of 2021.
MATIC’s price has likely outperformed thanks to the announcement of Polygon’s partnership with Instagram last Thursday, where creators will be able to make their own digital collectables and sell them on the platform.
🚨 MAJOR ANNOUNCEMENT🚨 💻Earlier this year, we announced a display partnership with @Meta.⛓️Now, @Meta has selected @0xPolygon for MINTING digital collectibles!For the first time ever, creators will be able to mint & sell Polygon-powered digital collectibles on @instagram! pic.twitter.com/bU0NorU7pe
— Ryan Wyatt (@Fwiz) November 2, 2022
As 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, yesterday, Polygon revealed that it was working with Disney to develop a proof of concept for exclusive digital collectables.
The MAGIC continues! 🪄✨Polygon is working w/ @WaltDisneyCo after participating in @DisneyAccel 🏾🏼For starters, we’re developing a proof of concept for EXCLUSIVE digital collectibles to recognize Disney employees during special occasions ✨
— Polygon – MATIC 💜 (@0xPolygon) November 11, 2022
Tapping into the creator economy space may have been the reason that the Polygon token has held up during the cryptocurrency meltdown.
“The value added to the creator economy is unmatchable and championing verifiable digital ownership on a platform with such reach will help us further our goal of onboarding the next billion users to Web3,” Sandeep Nailwal, the co-founder of Polygon said in a tweet.
This sentiment is shared by Harsh Rajat, CEO at Push Protocol who told Blockworks “the reason the price of MATIC has been trending upwards and will likely 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 in the health and growth of a network, and it’s clearly thriving on Polygon as more addresses are being added every day despite a downturn in the market.”