Polygon: The Swiss Army Knife Of Ethereum Scaling
By Martin Leinweber, CFA, Digital Asset Product Strategist
Polygon is a set of decentralized scaling solutions for Ethereum that aim to give developers the tools they need to build scalable, user-friendly dApps with low transaction fees and high guarantees of security.
Its business development efforts have proven to be one of the company's strengths, as evidenced by the various relationships the company has established with prominent web2 companies.
Despite the overall NFT market downtrend, Polygon has seen a massive 191% increase in NFT sales since the end of September. In the past few months, there have been strong moves from major Web2 companies trying to fully integrate NFTs into their platforms:
- Starbucks is revamping their rewards program by incorporating Polygon based NFTs.
- Reddit launched a collectible avatar program on Polygon, which has recently onboarded 3 million unique users.
- Meta is creating an NFT marketplace on Polygon to be integrated into their Facebook and Instagram platforms.
The platform is presently dominating the industry in big brand deployments, which could explain the recent increase in NFT revenues.
The MVIS® CryptoCompare Polygon VWAP Close Index (ticker: MVMATICV) measures the performance of a digital assets portfolio which invests in Polygon, with a closing value based on a 1h VWAP price.
MVIS® CryptoCompare Polygon VWAP Close Index
Source: MarketVector IndexesTM, data as of December 5, 2022.
About the Author:
Martin Leinweber is an expert in fundamental and quantitative trading strategies. He sees crypto assets as a fundamental building block for investors to achieve their return targets in a low interest rate environment. He works as a Digital Asset Product Strategist at MarketVector IndexesTM providing thought leadership in an emerging asset class. His role encompasses product development, research and the communication with the client base of MarketVector IndexesTM. Prior to joining MarketVector IndexesTM, he worked as a portfolio manager for equities, fixed income and alternative investments for almost two decades. He was responsible for the management of active funds for institutional investors such as insurance companies, pension funds and sovereign wealth funds at the leading German quantitative asset manager Quoniam. Previously, he held various positions at one of Germany's largest asset managers, MEAG, the asset manager of Munich Re and ERGO. Among other things, he contributed his expertise and international experience to the establishment of a joint venture with the largest Chinese insurance company PICC in Shanghai and Bejing. Martin Leinweber is co-author of „Asset-Allokation mit Kryptoassets. Das Handbuch“ (Wiley Finance, 2021). It’s the first handbook about integrating digital assets into traditional portfolios. He has a Master in Economics from the University of Hohenheim and is a CFA Charter holder.
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