If you have been following the news in recent months, you have undoubtedly seen Polymarket. Polymarket is a betting market, where it is possible to bet on the outcome of the American elections.
And that should be a huge positive for Polygon, right?
How much did Polymarket make for Polygon?
According to the data, Polymarket collected “only” $27,000 in transaction fees for Polygon’s Proof-of-Stake system in 2024.
These are not the figures we expected, because billions of dollars have now been bet on the American elections on the platform. In addition to the American elections, you can bet on all kinds of other things at Polymarket, including on the outcome of certain television series.
Polygon’s token is therefore not doing great. From the beginning of the year, Polygon is down about 65%. This means it cannot follow the successes of Bitcoin, among others, even though a fantastic application has been built on the blockchain.
Why does Polygon have value?
This brings us to an essential issue within the crypto industry, which is not only relevant to Polygon.
If you can build a successful application like Polymarket and then not benefit from it as a token. Turnovers do not increase and logically they do not affect the price. Why would a Polygon token represent tens of billions or hundreds of billions of dollars in value at all?
The same can be said about Ethereum.
Suppose we really start building applications there that can live up to the valuation of hundreds of billions of dollars. How will you benefit from this as an Ethereum token holder?
Especially now that more and more developments are taking place on so-called layer-2 blockchains. This may well be a small version of a big problem that applies to many tokens within the crypto world.
Are the Bitcoin maximalists right after all and is Satoshi Nakamoto’s coin the only one that is relevant in the long term?
Source: https://newsbit.nl/polymarket-is-groot-succes-voor-polygon-blockchain-toch/
