Polygon (MATIC) was one of the top 20 cryptocurrencies in terms of performance in the last 24 hours. For the first time since mid-August, the token gained nearly 17% and was trading at $0.98.
Although its valuation has retraced to $0.95, here are three possible explanations for MATIC’s 17% increase.
Polygon is Meta’s choice for NFT Minting :
Ryan Wyatt, CEO of Polygon Studios, announced on November 2nd that Meta, the parent company of social media platforms Facebook and Instagram, had chosen Polygon for its digital collectibles.
Remember that Meta recently joined the NFT bandwagon following the failure of its crypto project last year? The social media giant announced in August that users could begin posting NFTs on Instagram and Facebook.
With the latest collaboration with Polygon, creators will be able to mint and sell digital collectibles on Instagram using the Ethereum scaling solution.
Polygon is used by JP Morgan for the DeFi trade :
JP Morgan, one of the largest banks in the United States, completed its first DeFi trade on the Polygon network shortly after the Meta partnership.
The transaction was part of Project Guardian, a DeFi and blockchain pilot program launched by the Monetary Authority of Singapore, Singapore’s central bank (MAS).
According to people familiar with the matter, the Wall Street powerhouse wanted to conduct the trade on Ethereum and chose the layer 2 solution due to its low transaction fee.
Polygon Update :
Polygon published an update earlier today to address the performance of Avail, a general-purpose blockchain designed to scale other blockchains.
Avail was announced last June by the Ethereum scaling network as a Data Availability layer designed to provide scalable data for standalone chains, sidechains, and other layer-2 solutions.
Avail has been on testnet since June of this year, and the team hinted in the most recent update that they are getting closer to launching the Avail mainnet.