Indian blockchain startup Polygon is gaining much popularity in the market and its native cryptocurrency MATIC has now made its way to the institutional-grade Bitwise 10 Large Cap Crypto Index (BITX). This index is extremely popular in the crypto space and tracks the performance of the 10 largest crypto assets weighed by their free-float market cap.
Thus, getting a seat here is a major milestone for Polygon and all its investors. The native cryptocurrency MATIC now occupies a place in the top-15 crypto-list and has registered 183 times gains year-to-date. This massive rally in Polygon (MATIC) is backed by some of the strong developments taking place this year.
The Bitwise 10 Crypto Index Fund (BITX) has over $817 million in assets under management and has delivered a massive 369% returns over the last year. On a year-to-date basis, the Index has surged nearly 65%.
Polygon’s entry comes as part of the fund’s index reconstruction process during May-end. Interestingly, Polygon’s entry happens by replacing DeFi token AAVE. The Index rebalancing happens every month after screening factors like custody and liquidity.
Polygon will now occupy a space in the Index along with giants like Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Bitcoin Cash (BCH) and Litecoin (LTC). However, Polygon’s weightage currently is just 1.03%. On the other hand, Bitcoin’s is maximum at 63.92% followed by Ethereum’s at 28.85%.
Polygon’s Meteoric Rise
Polygon is basically a Layer 2 scaling and infrastructure development solution for the Ethereum blockchain network. It addresses some of the crucial issues of Ethereum like network congestion, slow speed, and high transaction fee. As a result, the Polygon blockchain is quite popular among DeFi developers and even other users.
As its solves some key industry issues, Polygon is slowly getting noticed among institutions and some big-shot investors. Last week, Polygon secured major funding from tech billionaire Mark Cuban although the exact amount remains undisclosed.
Polygon’s recent addition to the Bitwise 10 Large Cap Crypto Index fund will bring it to the notice of more institutional players, probably helping it rake more investments as well as drive the price of MATIC even higher.