In a recent development, Binance, the world's largest crypto exchange, announced on Friday that it would cease support for Polygon on its Non-Fungible Token (NFT) marketplace. The decision is part of the company's ongoing efforts to streamline product offerings.
As of 6am UTC, September 26, users will no longer be able to buy or list Polygon NFTs on Binance's marketplace. Additionally, the staking of LAND NFTs hosted on Polygon to earn daily The Sandbox (SAND) rewards will also be discontinued. The exchange urges users to withdraw their NFTs by the end of the year.
This announcement follows Binance CEO Changpeng Zhao's recent Twitter post refuting rumors about executives leaving the company or any ongoing projects being wound down. Zhao mentioned that Binance is smoothly sunsetting old products, which aligns with the latest decision to discontinue support for Polygon.
Polygon, the blockchain behind MATIC - the 14th largest cryptocurrency by market cap, has been significantly impacted by this news. As per CoinGecko, MATIC experienced a 2.4% dip from the previous day and was trading at $0.54. This plunge erased previous gains made by the token. Despite a surge a month ago due to news of tokenized Coinbase (NASDAQ:COIN) stocks coming to the network via Backed Finance, MATIC is now down 21% from those highs.
Polygon has been a popular choice for building decentralized finance (DeFi) apps or NFTs with greater speed as it aims to solve some of Ethereum's challenges. It is currently ranked as the fifth biggest blockchain for NFTs with a 24-hour trading volume of $831,880 according to CryptoSlam.
Interestingly, Reddit has used Polygon extensively for launching its NFT collections. Over the past year, more than 18 million of its Polygon-based Collectible Avatars have been minted. The online discussion platform continues to be one of the biggest brands tied to NFTs.
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