Just-In: Polygon Founder Nailwal Says Crypto Crash Is Temporary
Layer 2 scaling solution Polygon’s co-founder Sandeep Nailwal on Tuesday said the current market conditions will not impact the long-term Web3 developments. He thinks the downturn is more due to macro factors than any fundamental weaknesses in Web3.
Moreover, he tries to spark fresh confidence in its investors as he believes Polygon will survive the difficult situation. However, despite an increase in partnerships for Web3 ambition, Polygon still has a long way to go.
In fact, the Polygon has lost 66% in total value locked (TVL) since the start of the year. On Jan 1, Polygon had a TVL of around $5.44 billion, and this declined to around $1.82 billion on June 14.
Polygon’s Sandeep Nailwal Says the Crypto Market Fall is Temporary
Polygon’s co-founder Sandeep Nailwal in a tweet on June 14 shared his opinion on the crypto market crash and its impact on the Web3. He believes the bear market will be long, but a massive bullish recovery will be seen if the Federal Reserve removes this uncertainty. However, Nailwal also asserts that the possibility of it looks low considering sticky inflation and fears of stagflation.
Commenting on the private market, Sandeep Nailwal said:
“A lot of VC funds have raised a LOT of capital, even though they will be careful in selecting their bets, and acceptable valuations would be much lower but I expect the thesis based VCs to keep deploying. Most of them will also play in liquid markets.”
He thinks projects reaching a product-market fit (PMF) will still be able to raise funds, but those which are unable to should focus on surviving, taking consulting work, and cutting costs.
Sandeep Nailwal claims that projects such as Polygon have the potential to build generational value due to their strong treasury with plenty of funds to run a project for 2-3 years. In 3-6 months, after the Fed has raised rates by 50-75 bps 2-3 times, large investors will again invest in crypto and markets will be able to return to normal.
Polygon’s MATIC Falls Amid Market Pressure
Polygon’s MATIC token has fallen nearly 85% since the start of the year. MATIC opened the year with a trading price of $2.53 and reached a 52-week low of $0.3985 in the last 24 hours. At the time of writing, the MATIC price is currently trading at $0.42.
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