Decentralized Finance and Web3 capabilities are the two pillars of blockchain without which most chains fail to draw investors. Investors who have already pioneered in this space in their own ways are further working on making their footing stronger, the examples of which can be seen in Polygon’s efforts.
The Polygon Village
Built as a full-stack ecosystem for developers to develop and grow their projects, Polygon Village will be onboarding 1,000 projects to Polygon using cash grants and vouchers.
These grants will range from $5k to $15k, with the vouchers worth up to $40k, providing projects with higher adoption to help them benefit from the top-tiered Web3 service providers.
Opportunities as such these are appearing on many major DeFi chains since the introduction of different projects, in some manner, may be a sure-shot way of expanding the reach of the chain.
Besides, Polygon already has a stronghold in the DeFi market, being one of the top 10 chains. The Polygon network supports approximately 253 protocols that have a massive $2.6 billion locked in them.
Before the uneventful crash of May 2022, investors had over $4.1 billion invested. However, the invested amount wasn’t even close to the highs of June 2021 when Polygon had about $7.2 billion locked in.
Polygon TVL | Source: DeFi Llama – AMBCrypto
Not so auto-MATIC
Given the nature of the developments, MATIC reacted positively to the release of Polygon Village. The new release, activated the token’s recovery by 10.98% with the trading price above $0.6.
An improvement in the trading price might, after all, end up being the turning point for MATIC as the price indicators exhibit a shift in the trend as bullishness is poised to return to the crypto market gradually.
MATIC price action | Source: TradingView – AMBCrypto
This would be a relief for MATIC’s 412k investors across the globe who have, over the last month, only experienced losses. All the transactions conducted across the Polygon network have been at a loss.
Polygon on-chain transactions | Source: Santiment – AMBCrypto
As a consequence of the same, the altcoin’s adoption rates have plunged severely in the last seven months, which is visible in the decline of the network growth.
Polygon network growth | Source: Santiment – AMBCrypto
Should the Polygon Village trigger a rise for MATIC, it could carry the altcoin closer to $1, which is a critical support level for the coin at the moment.
