DraftKings NFT Plans Spur Interest in Cryptocurrency Polygon

Posted on: December 27, 2021, 12:09h. 

Last updated on: December 27, 2021, 12:50h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

DraftKings’ (NASDAQ:DKNG) recently announced non-fungible token (NFT) plans are stoking increasing interest in Polygon, a previously unheralded cryptocurrency.

Polygon
DraftKings office in Boston. The company’s relationship with Polygon is helping the cryptocurrency rally. (Image: MLive.com)

In July, the sportsbook operator announced the creation of DraftKings Marketplace, which features “curated NFT drops and supports secondary-market transactions.” At that time, DraftKings said its NFT platform is partnering with Autograph, an NFT collecting platform cofounded by Tampa Bay Buccaneers quarterback and seven-time Super Bowl champion Tom Brady.

Transactions on the platform are conducted in Polygon, which is based on the ethereum blockchain. When DraftKings announced a partnership with Polygon in October, the digital asset ranked 21st by market value on the list of cryptocurrencies. Today, it’s up to the 14th spot, with a market capitalization of $19.91 billion, indicating the relationship with DraftKings is perhaps generating new interest in the digital token.

Data Confirm Polygon Interest

Some data points confirm traders are embracing Polygon.

Seeking Alpha readers got excited about the expansion of the NFT market last week. Bolstered by its involvement in a deal with the NFL players’ union, Polygon became one of the most-added cryptocurrencies, according to an analysis of portfolio additions and deletions,” reports the financial news and investing blog.

Polygon’s add-to-remove ratio among Seeking Alpha readers is five-to-one, meaning far more investors on that platform are embracing the digital asset than are parting ways with it.

DraftKings’ alliance with Autograph could be part of the reason Polygon is generating buzz. Not just the collectibles company backed by Brady, it has content arrangements with movie studio Lionsgate, as well as NFT deals with Tiger Woods, Wayne Gretzky, Derek Jeter, Naomi Osaka, and Tony Hawk.

Further bolstering its NFT efforts, and potentially Polygon in the process, earlier this month DraftKings announced an accord with the NFL Players Association (NFLPA) earlier this month to distribute NFT collections of current players.

Proof Is in Polygon Pudding

It’s clear the DraftKings relationship is having some impact on Polygon. On Dec. 13 – the day the NFLPA deal was announced – the cryptocurrency traded around $1.76. At this writing, it goes for $2.77.

When the partnership with the gaming company was made public on Oct. 18, Polygon traded around $1.52. The digital token has tripled in value since late July.

“Polygon solves pain points associated with blockchains, like high gas fees and slow speeds, without sacrificing on security. This multi-chain system is akin to other ones, such as Polkadot, Cosmos, Avalanche etc.,” according to the token’s developers.

The asset looks to beat those rivals by fully leveraging the ethereum’s network effects, while being more powerful and secure.