Ethereum and Polygon have become popular choices for institutional funds and treasury products in recent years. This trend is seen as positive for the crypto tokens and the overall ecosystem, as it increases demand and utility. Despite this, both ETH and MATIC prices experienced a slight drop of around 4% in the past week.
Institutional investment in Ethereum and Polygon has been on the rise, with the launch of new crypto-related products. These two ecosystems are dominating the investing landscape, potentially enhancing the value of tokens within their networks.
Data from @rwa_xyz indicates that a significant amount of institutional funds and treasury products are being deployed on Ethereum and Polygon. Initially met with skepticism, institutional capital is now flowing into these networks, making them the preferred choices for many market participants.
The total value of assets locked in Polygon has surpassed $832 million, according to DeFiLlama data. Updates and launches from the Polygon network, such as the AggLayer and plans for a POL token, have increased the project’s relevance among traders. Ethereum’s momentum is driven by anticipation surrounding the approval of the Spot Ethereum ETF product by the US Securities and Exchange Commission.
Despite the recent price drop, with ETH trading at $3,364 and MATIC at $0.5478, both tokens remain close to key support levels. Looking ahead, market participants can anticipate new projects and protocols within the Polygon ecosystem, including a $50 million web3-focused fund launched by MATIC co-founder Sandeep Nailwal and Cere Network co-founder Kenzi Wang. The introduction of Polygon’s AggLayer aims to address liquidity fragmentation issues for traders and protocols in the crypto space.