Polygon’s MATIC Token Jumps After 21Shares ETP Listing

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The “layer 2″ blockchain project Polygon’s MATIC token is up 16% in the last 24 hours after crypto exchange-traded product (ETP) issuer 21Shares announced it’s listing a product linked to the cryptocurrency’s performance on Euronext exchanges in Paris and Amsterdam.

So-called layer 2 solutions work on top of primary blockchains to speed up transactions. Polygon aims to solve the scalability issues on the Ethereum network, which has suffered from congestion and high fees.

The new listings for the 21Shares ETP, which the company says is Europe’s first product linked to the MATIC performance, comes after it was unveiled on the SIX Swiss Exchange last month.

At press time, Polygon’s native token, MATIC, was trading around $2.05. It’s still well off the all-time high of $3 reached in May, based on prices reported by the cryptocurrency exchange Kraken.

Ethereum Gas Fees

More than 3,000 apps are now on Polygon, according to a report from blockchain development platform Alchemy.

“I’m very bullish because of the sheer number of NFT and gaming projects built on Polygon,” stated Alexandre Lores, analyst at Quantum Economics.

In July, Polygon launched a $100 million fund for tasks aimed toward combining blockchain expertise with gaming.

“This made Polygon a step ahead of the rest of crypto in gaming,” stated Lores.

Due to excessive charges on Ethereum – often known as gasoline – it doesn’t make sense to construct a online game on the blockchain, Lores stated.

Lucas Outumuro, head of analysis at blockchain analytics agency IntoTheBlock, stated that the 21Shares ETP itemizing may carry extra inflows to Polygon. However, he famous, “it’s more likely that the market is repricing layer 2s as we saw with Immutable X (IMX) in the past few weeks.”

Dennis Hui, a DeFi portfolio supervisor at DAO Ventures, stated that the worth pop for MATIC may simply be a mirrored image of a bull market in cryptocurrencies.

“This is a bull market, a bull market that is looking for an excuse to rally, and that’s all there is to it,” Hui stated. ”Every week in the past, we had been in love with metaverses. 1 / 4 in the past it was layer 1s.” Layer 1 refers to major blockchains together with Ethereum, Solana, Cardano, Polkadot and Avalanche.

Also up on the day are Terra’s LUNA, which has elevated 10%, buying and selling round $63.50 at press time. Solana (SOL) is up 7% within the final 24 hours and Crypto.com (CRO) is up 8%.