The Polygon (MATIC) network has grown tremendously over the past year, cementing itself as one of Ethereum’s leading layer-2 scaling solutions.
With more and more developers choosing to build on Polygon, several tokens on the network stand out as promising investment opportunities.
This article will discuss five Polygon-based tokens that seem poised to benefit the most from the continued adoption of the network.
1. Sponge V2 (SPONGEV2)
Kicking off our list is Sponge V2 (SPONGEV2), a meme coin that recently migrated to Polygon following a security incident with the original token.
This shift to Polygon aims to leverage the network’s superior scalability and lower fees to improve Sponge V2’s play-to-earn (P2E) gaming setup.
Sponge V2’s team is developing a SpongeBob-themed racing game where gamers can earn more SPONGEV2 tokens through hilarious gameplay mechanics.
Not only that, but SPONGEV2 holders can stake their tokens on Polygon and earn yields of over 3,800% per year at the time of writing – although this will decrease as more tokens are locked up.
The project has achieved more than $7.4 million in staking value ahead of its official launch on Uniswap in the coming weeks.
There have even been rumors that Justin Sun, the founder of TRON, might be looking to invest in SPONGEV2, given that he held over 108 million SPONGE tokens last year.
Although there’s no telling whether SPONGEV2 will achieve the same level of success as its predecessor, this Polygon-based token seems to tick all the boxes for investors seeking high-yield opportunities.
2. Chainlink (LINK)
Next on the list is Chainlink (LINK), an oracle network bridging real-world data into Polygon’s blockchain.
Chainlink supplies external data like stock prices to Polygon’s smart contracts, enabling advanced DeFi applications. The native LINK token pays Chainlink operators and helps collateralize contracts.
By tapping into Chainlink’s extensive data sources, Polygon can expand its DeFi capabilities and use cases.
This integration has set the stage for high-profile developers to begin building on Polygon as an alternative to other layer-2 chains.
Ultimately, Chainlink’s connectivity unlocks new functionality for Polygon, making it another of the ecosystem’s top tokens to consider investing in.
3. Aave (AAVE)
Aave (AAVE) is a decentralized liquidity protocol enabling lending and borrowing with overcollateralized (or undercollateralized) assets.
Lenders earn passive income by providing liquidity, while borrowers access loans by collateralizing supported assets. The native AAVE token governs the entire ecosystem and can be staked for recurring yield.
Aave has integrated with the Polygon network, allowing users to bypass Ethereum’s high fees easily.
This integration features a bridge to transfer assets to Polygon’s sidechain with a small fee, improving accessibility for investors.
Overall, integrating with Polygon has expanded Aave’s use cases while helping boost DeFi activity on the network.
4. Render (RNDR)
Next on the list is Render (RNDR), a decentralized platform permitting peer-to-peer GPU rendering services on the blockchain.
Users can contribute their unused GPU power to complete 3D rendering tasks for digital games, VR, and the metaverse to earn RNDR tokens.
Originally built on Ethereum, Render has since integrated with Polygon to utilize its speed and cost benefits.
This allows Render to reduce long transaction times and high fees – making the rendering process more efficient.
With demand for GPU power surging across gaming, AR, AI, and more, Render’s move enables a more user-friendly platform for all.
Moreover, given that the native RNDR token is valued at just $4.32, 50% below its 2021 all-time high, there’s undoubtedly room to run if there’s a bull run in the crypto market this year.
5. ApeCoin (APE)
Last on the list is ApeCoin (APE), the ERC-20 token affiliated with the Bored Ape Yacht Club NFT collection.
APE enables governance and utility within the ApeCoin DAO, allowing holders to influence treasury decisions.
Initially, on Ethereum, ApeCoin has since integrated with Polygon to tap into faster and cheaper transactions across Polygon’s dApps and games.
In turn, this boosts ApeCoin’s scalability and user experience relative to Ethereum. Moreover, the migration aims to avoid the high fees and congestion often witnessed during high-profile NFT mints.
Overall, ApeCoin’s integration with Polygon has strategically enhanced the token’s utility – and could spur further adoption as users look for more cost-effective ways to participate in the NFT space.