Polygon [MATIC] announced a new partnership with BitGo following the success of its most recent hardfork. BitGo is a bitcoin venture platform that provides regulatory custody and critical infrastructure.
The collaboration would allow MATIC token holders to store their funds in hot wallets and allow users to wager and earn incentives.
🪙@BitGo launches support for #Polygon 🥳— Polygon (@0xPolygon) January 19, 2023
It now offers Polygon’s native MATIC token in hot wallets & qualified custody.
MATIC holders now have the ability to stake their ERC-20 MATIC tokens through BitGo and earn rewards.
A few of the reasons why BitGo made this move 👇
Is MATIC Staking a Supply-Supply Strategy?
The Polygon community and MATIC holders, who may have been overjoyed, reacted differently to the update than the on-chain development activities. According to Santiment, Polygon’s development activity has reduced somewhat to 12.64. The simplicity of the statistic shows a decrease in developer contributions to Polygon’s repositories.
According to Santiment’s data, MATIC’s overall supply has been flat since November 2022. As of this writing, 1.49 billion units were available. This meant that the overall number of MATIC tokens, whether locked or in use, had been stable for about three months.
Colin Butler, Polygon’s worldwide head of institutional finance, believed that the BitGo collaboration was critical. Butler noted in relation to MATIC holders’ participation in staking,
“Staking is extremely popular already amongst MATIC holders and we have no doubt that support from a leading custody provider like BitGo will only add to this.”
NFTs, The driving force behind Polygon’s growth
Meanwhile, Bankless published a report on Polygon’s evolution over time, delving into the reasons why the web3 firm has benefited from numerous alliances.
The source of sovereign financing data specifically addressed the chain’s history with NFTs. Bankless pointed to the 2022 bear market, in which NFTs and the DeFi TVL plummeted, and stated Polygon stood out from the rest.
Furthermore, Nansen statistics showed that NFTs in the Polygon chain surged in late 2022.
The statement went on to say that the FTX collapse had no effect on growing Polygon adoption. But what was the primary catalyst? Bankless stated that the collaboration of Reddit collectibles, via which traders made over 8.4 million NFTs, was critical.
The collaboration between Reddit and NFT collectibles is without a doubt Polygon’s most exciting adoption story.
However, at the time of publication, statistics available suggested that the Polygon chain’s NFT trade volume was $108,000. Furthermore, the $1.47 million volume on January 19 set a new year’s high. At such a high level, it’s possible that as the chain grew, digital collectibles traders would replicate the success.