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Polygon flying high: MATIC Web3 portal for global brands defies crypto market gloom

By Raphael Sanis

Edited by Charlie Mellor

11:34, 8 November 2022

Polygon coins in front of a price graph
A recent Bernstein report said Polygon’s success was partly due to acquiring talent from tech giants, such as Amazon – Photo: Shutterstock

Polygon has stormed into a new Web2 alliance after a partnership with Meta (META) to host non-fungible tokens (NFTs) on Facebook and Instagram

The move is part of a wider trend as Polygon looks to become the leading blockchain for brands making the jump into the crypto industry, according to a recent Bernstein report.

MATIC, Polygon’s native cryptocurrency, has rocketed this month and passed the $1 barrier. As of 8 November, MATIC was up 40% in the past 30 days.


The bullish Bernstein report

As it looks to on-board notable clients into the Web3 world, Polygon’s Layer 2 solution has been chosen by Starbucks (SBUX), Robinhood (HOOD), Nubank, and most recently Meta.

Bernstein reported that it has acquired talent from technology giants to achieve this, including Amazon (AMZN) and YouTube, according to CoinDesk.

The analysts Gautam Chhugani and Manas Agrawal wrote in the Bernstein report: “This has put Polygon in the unique position to be the Web3 on-ramp for millions of users.”

But Polygon is not the perfect destination for large brands just yet. Bernstein argued that the Layer 2 network is not fit for long-term success as it is still attached to the Ethereum (ETH) blockchain. The brokerage said: “Polygon has been parasitic to Ethereum.”


3,130.75 Price
+0.400% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00


57,805.55 Price
+0.350% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


369.70 Price
+5.760% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50


0.11 Price
+0.110% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

However, Polygon has been able to use this to its advantage. It has managed to acquire multiple teams during the bear market that were originally working on the Ethereum blockchain.

Being based on Ethereum has also allowed it to utilise cryptocurrency standards, including coding languages, software tools and ETH as a gas currency.

Polygon’s price flying high

Chhugani and Agrawal noted that “the market has started rewarding it [polygon] for building through the bear market”.

After the Meta partnership was announced on 4 November, MATIC surged above the $1 mark for the first time since August. It reached an intraday high of $1.19. MATIC continued climbing throughout the coming days and peaked at $1.29 on 7 November.

At the time of writing, MATIC had fallen from this high. It was trading at $1.17, down 4% in the past 24 hours, but still up 40% over the previous month.

Markets in this article

Meta Platforms Inc (Extended Hours)
498.35 USD
-14.4 -2.810%
0.52734 USD
0.00302 +0.600%
AMZN Inc (Extended Hours)
194.35 USD
-0.92 -0.470%
Robinhood Markets Inc (Extended Hours)
22.34 USD
0.23 +1.050%
Starbucks Corp (Extended Hours)
74.77 USD
1.4 +1.910%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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