DraftKings Stakes Digital Assets for Polygon While Its Shares Stumble

DraftKings will stake the digital assets from its reserves to support Polygon after signing a partnership deal with the blockchain last October. A partnership with Zero Hash will carry out this new decision from the sportsbook operator. This move substantiates the platform’s intention to move deeper into the crypto space. However, that is not all to this new game started by DraftKings, as this endorsement could open up the Polygon to the millions of users of this sporting betting site.

Polygon is a blockchain project built on the Ethereum blockchain as Matic solutions 2017. The project intended to bring support to the Ethereum blockchain in terms of scalability and performance. After being in operation for more than three years, the project was renamed Polygon and is currently one of the fastest-growing projects on Ethereum. Polygon is also home to nearly 7000 dApp developers, and the number is still growing. Polygon’s native coin MATIC reached its all-time high of $2.92 soon after the rebranding. However, it is currently trading nearly half the value of its all-time high at $1.43. 

Now, these new developments could help push the price of MATIC to the front. These initiatives from DraftKings are considered as steps towards sustaining a long-term partnership with Polygon. The blockchain will power the DraftKings marketplace, the dedicated NFT infrastructure from the sportsbook operator. This synergy is expected to maximize the capital and liquidity of the betting platform and strengthen governance and security on Polygon. Although MATIC lost nearly 8% in the last week, the last 24 hours have been good to the coin with a 2.76% edge. DraftKings’ decision to support Polygon through its digital assets could help continue MATIC’s positive price action in the weeks to come. Check out the linked article to find more details about MATIC’s price movements in the future.

Despite the lucrative business deals and ideas, DraftKings’ shares keep sliding down in the stock market. The high-end competition from firms like MGM has subdued the value of DraftKings by 10%. Moreover, the revenue of the sportsbook operator is expected to fall significantly in 2022 as many states still are debating over permitting sports betting.

On the other end, Polygon expects to grow as a form of payment in mainstream businesses and industries in the current year. Such expansion of the project will also help DraftKings, which has opted for MATIC over coins like Bitcoin or Ethereum. Since the tie-up between the two firms has been tightened, we can hopefully expect them to work towards wider adoption of this digital coin. Polygon has already integrated dApps like Aave, Curve, Balancer, Sushiswap, and more.

By Cedric McMahon

Cedric McMahon is an specialized Finance Content Writer. He has been writing the based on stock market, finance updates and investment in the cryptocurrency. He has recently joined out team.

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