Reddit is teaming up with Polygon to pull social media one step closer to the cryptocurrency industry.
- Reddit & Polygon Web 3 Fund
- Polygon (MATIC) Outlook
Web2 —> ™
Web3 —> ᵍᵐ
— Farokh.ethᵍᵐ (@farokh) December 16, 2021
Reddit’s latest announcement with Polygon shows that the social media giant is getting more bullish on the blockchain and web 3 space. Polygon might be ready to take off as the network keeps on growing.
Reddit & Polygon Web 3 Fund
Today, Reddit co-founder Alexis Ohanian announced that his venture capital firm Seven Seven Six and Polygon have teamed up to create a $200 million fund to invest in social media and web 3-based development.
We’re excited to announce our $200 million joint initiative with @0xPolygon
With Polygon, we’ll explore better ways for humans to virtually connect by backing projects that are building with social media and Web3 in mind. pic.twitter.com/4okjKzn6SA
— 7️⃣7️⃣6️⃣ (@sevensevensix) December 17, 2021
Polygon will be responsible for providing the infrastructure necessary to support the funded projects. The team says that the investment fund will primarily be backing projects which “explore better ways for humans to connect online.”
Ohanian says that the initiative aims to capitalize on all the emerging opportunities in the gaming and social industries.
“We are still in the early days of Web3 and the most obvious opportunities right now are in gaming and social. This initiative will do just that, with a focus on gaming properties and social media platforms built on Polygon’s scalable infrastructure.”
Polygon has been growing at a staggering rate over the past year. As reported in October, Polygon hosts more than 3,000 projects, up from just 30 since last year, according to data from blockchain analytics provider Alchemy.
The protocol seems to have a lot of money to throw around lately; just last week, Polygon announced a $400 million deal with Mir Protocol.
Mir's amazing team developed the world’s fastest ZK scaling tech; we are joining hands to utilize it and build Polygon Zero – a highly-scalable, Ethereum-compatible ZK Rollup. pic.twitter.com/99m7Y0tDTN
— Polygon | $MATIC – We're hiring! (@0xPolygon) December 9, 2021
Polygon (MATIC) Outlook
If you aren’t familiar with Polygon (MATIC), it is a layer-2 (L2) scaling solution for Ethereum that lowers the gas fees and friction that comes with the Ethereum blockchain.
Looking at the charts, Polygon’s insane growth is reflected in the price. Year-to-date, MATIC is one of the top performers in the market, up over 11,000% since January. MATIC is currently trading at $2.06 USD.
On the weekly timeframe, Polygon is in a prime position to enter price discovery, assuming that Bitcoin behaves and continues to grind up. Two weeks ago, MATIC closed its highest weekly candle ever, and the past two weeks have held support thus far. If Bitcoin stays strong, I think we can expect to see MATIC take off in the coming weeks.
Anywhere above $2.00 does seem to draw a lot of sellers, as indicated by the high amount of wicks above this level. It makes sense, though, as for most of the second half of 2020, Polygon stayed pressed under resistance at $0.02. I imagine the last bit of the early investors are securing their 100x profits before new buyers step in to push MATIC further.