FTX’s disaster has caused the market to be filled with fear of uncertainty and doubt (FUD), and major cryptocurrencies related to Sam Bankman-Fried have suffered as a result, but Polygon (MATIC) and tokens backed by gold, have outperformed.
The price of Polygon’s MATIC token has gone up by 6% over the past week. By comparison, it’s competitor, Solana has seen the price of its token SOL dip by 46 %.
In addition to stablecoins, traders looking for a safe haven have turned to PAX Gold (PAXG) issued by Paxos, which has seen an 8.2% price increase.
Chris Kline, CEO and co-founder of Bitcoin IRA told Blockworks that MATIC is more hyper-focused and specialized than other cryptocurrencies, which may have allowed it to protect itself during market fluctuations.
“Polygon’s MATIC token is used to pay transaction fees and participate on the network,” Kline said. “Although MATIC, like all other cryptocurrencies, is 60%+ lower than its all-time highs of 2021.
MATIC’s price has likely outperformed thanks to the announcement of Polygon’s partnership with Instagram last Thursday, where creators will be able to make their own digital collectables and sell them on the platform.
Source: https://blockworks.co/news/gold-linked-tokens-and-polygon-buck-crypto-downtrend/