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Meta digital collectibles partnership lifts polygon

AUSTIN, TEXAS - MARCH 15: Mark Zuckerberg, via video,  speaks at Into the Metaverse: Creators, Commerce and Connection during the 2022 SXSW Conference and Festivals at Austin Convention Center on March 15, 2022 in Austin, Texas. (Photo by Samantha Burkardt/Getty Images for SXSW)
Meta CEO Mark Zuckerberg. Meta will use the Polygon blockchain for its new Instagram digital collectibles feature. Photo: Samantha Burkardt/Getty for SXSW

Polygon is soaring after Meta (META) announced it will use the blockchain for its new Instagram digital collectibles feature.

Matic (MATIC-USD), the native cryptocurrency of the Polygon sidechain, hiked 32% this week to $1.20, rising over 4% in the last 24 hours, according to CoinGecko data.

Check: Crypto live prices

Polygon, is an Ethereum (USD-ETH) sidechain network, that allows users to buy and sell cryptocurrencies and NFTs for a fraction of the transaction fees that they would have to pay on the main Ethereum network.

The low transaction fees on Polygon have made it the go-to NFT blockchain for NFT avatars on Reddit, and the development of entertainment-linked digital collectibles for Disney (DIS).

Watch: Why Create NFT’s? | The Crypto Mile Explains

Last week, Meta announced on its website: "We’re introducing a way for creators to make their own NFTs, or digital collectibles, and sell them to fans and collectors both on and off Instagram."

NFTs, or non-fungible tokens, are a new phenomenon in the cryptocurrency ecosystem that allows for unique assets to be stored on the blockchain.

However, the word NFT has now been substituted for the easier-to-understand "digital collectible", which is what Meta is planning to bring to over 1 billion users of Facebook and Instagram.

These digital collectibles usually come in the form of artwork such as illustrations, digital paintings and short animations that are usually traded on NFT marketplace called Opensea.

Read more: Bored Ape Bar: Inside the $100,000 membership exclusive NFT club in London

Meta said: "Creators will soon be able to make their own digital collectibles on Instagram and sell them to fans, both on and off Instagram.

"They’ll have an end-to-end toolkit, from creation, starting on the Polygon blockchain, and showcasing, to selling.

"People can easily support their favourite creators by buying their digital collectibles directly within Instagram.

"We’re testing these new features with a small group of creators in the US first, and hope to expand to more countries soon."

The social media company also said it is expanding the types of digital collectibles that can be showcased on Instagram to include video.

Meta will also add support for the Solana (SOL-USD) blockchain and Phantom (PHM-USD) wallet, in addition to the blockchains and wallets that are already supported.

Information for digital collectibles such as collection name and descriptions from Opensea, will be available on Instagram.

Meta is also testing a way to "mint" NFTs on Instagram. This will be a user-friendly way to create unique digital assets and sell them on the blockchain.

Mihailo Bjelic, co-founder of Polygon, told Yahoo Finance UK: "Things are accelerating on the polygon side, which is quite interesting amid a bear market.

Read more: Fidelity to offer zero-fee crypto trading to retail investors

"On the adoption side, we have onboarded major projects from the biggest traditional companies.

"From Disney to Instagram, from Stripe to Adobe (ADBE).

"We are excited to announce ZkEVM, which many people consider the 'Holy Grail' of Ethereum scaling and infrastructure in general.

"Full Ethereum compatibility, ZkEVM fully leverages Ethereum's security as the most highly secure blockchain in the world.

"Apart from the Ethereum merge we believe this to be the most significant tech milestone this year and will usher in a new era of mass adoption."

Polygon has built some of the biggest Web3 projects with Reddit NFT avatars.

Watch: What are NFTs?