While FTX Is Sinking Everyone Takes shelter in MATIC and These Altcoins!

MATIC and gold-backed cryptocurrencies have served as a safe haven in the FTX crisis. Cryptocurrency investors profited from these tokens in the hours when Bitcoin dropped to $16,000.

These altcoins were safe havens in the FTX crisis

The cryptocurrency market was rocked by the bankruptcy of FTX in November. There is a heavy demand for gold-backed tokens right now, as reserve-backed cryptocurrencies are one step ahead. The gold price rose 8.51% in a span of seven days as the cryptocurrency market was hit by the FTX crisis. In the process, it climbed from its lowest level of $ 1,628.40 to $ 1,766.92. In the one-on-one period, the price of Pax Gold (PAXG) also rose from $1,624.93 to $1,767.30. Tokenized gold has largely followed the price of physical gold.

Each PAXG token is backed by one ounce of the 400 ounce London Good Delivery gold bar stored in Brink’s vaults. This provides more credibility alongside cryptocurrencies that use tokens as collateral. Investors are increasingly inclined towards cryptocurrencies backed by physical gold. This is because gold tokens also closely follow physical gold price movements.

Polygon (MATIC) was among the highlights in the crash

During the crisis and the sales it caused, MATIC, which caught a strong trend with its latest subsidiaries, was at the forefront. The Ethereum scaling solution has emerged as one of the robust protocols to the crises. Last Thursday, Instagram parent company Meta partnered with Polygon to add NFT features to its platform. The altcoin project announced on November 11 that it is working with Disney to develop a proof of concept for digital collectibles.

MATIC has survived the FTX crisis strongly as a result of major affiliate announcements. Information from TradingView shows it is currently 15% more expensive since Nov. Despite the 6% price loss in the last 24 hours, MATIC price is trading above the $0.9 zone. It managed to climb as high as $1.3 at one point in the Meta and Disney announcements above.

In this middle, MATIC price managed to stay in the green throughout November. It fell just 21% from its local high of 1.30 after the meta announcement. It is worth noting that this is despite the over 50% losses in the market despite the FTX crisis. However, the project’s recent breakthroughs offer a valid use case that could attract new contributors. Thus, it helps to increase the level of flexibility. This benefits the altcoin market as a whole. Sandeep Nailwal, co-founder of Polygon, noted in a tweet:

Value-added in the creative economy is unmatched, and advocating for verifiable digital ownership on a platform with such access will help us further our goal of engaging the next billion users on the Web3.

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