Institutions deploy NFT’s on the Polygon Network
With the crypto market down approximately 75% from its all-time high, we are unarguably in the midst of a bear market. Historically, bear markets shake out the weaker projects and less committed individuals, resulting in a better industry moving forward. Projects with strong teams and technologies make it through alive. Today we are going to look into the Polygon Network and see what’s been brewing these last few months.
The Polygon Network is a layer 2 scaling solution for Ethereum that is rapidly gaining traction in the world of non-fungible tokens (NFTs). Its high throughput and low latency have made it a popular choice for institutional NFT programs, and its security as a layer 2 blockchain, backed by the Ethereum network, has helped to attract a growing number of users and projects. There is also a thriving DeFi ecosystem with a total value locked of 1.05 Billion across, lending, trading, and staking.
This past October, Reddit, the online message board company, roll out NFT avatars on Polygon. Reddit sold 86,000 NFT at a price ranging from $10-$100 each which now has a trading market cap of 100 million. Meaning the average NFT price trades at $1,162. Since then, third-party artists have sold another 2.8 million Reddit NFT’s. This endeavor proved to be wildly successful, and many more are expected to follow.
There are two more notable institutional partnerships launching on Polygon.
1. Starbucks launched last month in beta its Odyssey rewards program and is now opening up access to waitlist customers. The program offers an interactive experience called Journeys and will utilize digital stamps (NFT’s) as a reward program on the polygon network. Starbucks currently has 27 million active loyalty members.
2. Instagram users will soon be able to use the app to mint, showcase and sell digital collections powered by non-fungible tokens (NFTs) on Polygon, giving creators a new way to engage with and monetize their fan communities. There are over 2 billion users on Instagram.
Looking at the unique addresses chart below, we see user growth keeps climbing, despite the bear market. I think it’s clear Polygon will be one of those successful projects emerging strong from the bear market. What do you think? — a gwei for your thought