Polygon Network (MATIC) attracted a $450M in funding led by Sequoia Capital, as the investment giant turned its attention to Web3 technology. Polygon is becoming more important as it draws in more games for no-fee transactions.
Sequoia Capital has put forward both serious exploration of cryptocurrency and Web3 projects. The firm also set up a policy team in Washington to drive the legislation for using digital tokens and for NFTs. Currently, the NFT space and play to earn projects are completely unregulated, except for some of the tokens traded on exchanges.
Sequoia Capital is catching up with Andreessen Horowitz, the leading investor in crypto projects with a specific arm for blockchain startups. This time, interest in blockchain technologies goes directly to applicable networks with a clear use case, namely gaming, digital property and the potential for a decentralized metaverse.
Polygon Extended Funding, Attracts Key Game Projects
Polygon Network, formerly Matic, completed its funding in 2019, raising $5.6M in its token sale. Three smaller seed rounds were also completed between 2019 and 2021.
Polygon has been used to transfer several NFT and gaming projects, including CryptoKitties, as well as the popular games Sunflower Farmer, Pegaxy and Revv Racing
MATIC Still to Rally
The MATIC asset has remained at a relatively low valuation, despite expectations of a rally to $10. MATIC grew by around 9% on Wednesday following the news of the new funding, to $1.95.
MATIC trading volumes picked up in the past days, reaching around $2.5B in 24 hours. The token is one of the earlier to be adopted on most exchanges, while growing its importance for owning NFTs and for play to earn games. The MATIC token is also used in giveaways, NFT mints and as rewards in some gaming environments.
The Polygon network also locks in $5.4B in DeFi projects, adding liquidity for games that picked this network as their preferred scaling solution. The Polygon protocol also hosts the QuickSwap network, one of the tools for decentralized price discovery for play to earn tokens.