(Bloomberg) — Polygon’s MATIC token jumped after Walt Disney Co. chose it for a business-development accelerator program.
MATIC was 1.3% higher Friday morning in Asia after surging 21% on Thursday in the wake of Disney’s announcement that Polygon was one of six companies selected. Read more on Disney’s venture into the metaverse here.
“The implications for Polygon are significant, given that it was the only blockchain provider chosen,” Walter Teng, digital-asset strategy associate at Fundstrat, wrote in a note Thursday. Since Disney “hasn’t invested or built an in-house crypto solution, the accelerator marks its foray into the digital-asset space.”
The rally in MATIC is a rare bit of good news for cryptocurrencies, which have struggled in recent months amid Federal Reserve rate hikes to quell inflation, a souring of risk appetite and high-profile meltdowns involving the Terra/Luna ecosystem and hedge fund Three Arrows Capital.
Read: Crypto Slide Puts Outlook of a Billion Investors by 2023 to Test
MATIC itself, which was co-founded by Sandeep Nailwal and counts billionaire Mark Cuban as a mentor, is about 75% below its record high in December. But such announcements from a blue-chip company like Disney can raise expectations for greater potential backing and adoption.
“As crypto onboards its next 100 million users, it is perhaps apt to consider partnerships and mainstream exposure,” Teng said.
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