The second largest crypto ecosystem Ethereum (ETH) and scaling protocol Polygon (MATIC) have noted a rise in institutional investment with the recent launches of crypto-related products. The Ethereum and Polygon ecosystems therefore dominate the investing landscape, likely boosting the utility of tokens in the networks.
Data from the tracker behind the X handle @rwa_xyz suggests that a majority of institutional funds and treasury products are being deployed on Ethereum and Polygon. Market participants were initially skeptical of capital from institutional investors, however, the landscape has changed and these two networks have emerged as the dominant ones.
Top crypto treasury products
The total value of assets locked (TVL) in Polygon has crossed $832 million per DeFiLlama data. With new updates and launches from the Polygon network, the arrival of the AggLayer and plans for a POL token, there is a rise in the project’s relevance among traders.
The catalyst driving Ethereum is the optimism surrounding the launch of the upcoming Spot Ethereum ETF product, its approval by the US Securities and Exchange Commission (SEC).
At the time of writing, ETH and MATIC wiped out nearly 4% of their value in the past week. ETH trades at $3,364, hovering close to key support at $3,400. MATIC is trading at $0.5478, and the price of the Layer 2 token is nearly unchanged in the past 24 hours.
Market participants can expect new projects and protocols in the Polygon ecosystem with news of 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 solves the liquidity fragmentation problem for traders and protocols in the crypto ecosystem.