Is Polymesh a Gem?

RWA or real-world assets are currently one of the most promising sectors in crypto. Hence, it’s well worth looking for gems in this sector. Especially after BlackRock invested heavily in this sector. One promising project is Polymesh ($POLYX). It has been around since May 2022. 

So, what is the current potential for Polymesh?

Is Polymesh Trending?

To see if Polymesh is trending, we can use various tools. For starters, we can look at the CoinMarketCap page for trends in RWA. By marketcap of all crypto, Polymesh ranks as 205th. However, on the RWA page, it ranks as 6th by marketcap. That’s a good position.

The current market sentiment is not good. The Fear and Greed index is at 48.8. It just recovered a bit from a nose dive from 64 to 43 in 3 weeks. This could mean that the market has bottomed out and a recovery is imminent. On the other hand, a bearish view could see market sentiment even plunge further. The $POLYX token went from $0.266 to $0.285 during the last 24 hours. The token price is up by 7.3% over the last 24 hours. 

Source: CoinMarketCap

If we look at the Investing.com site, the sentiment for Polymesh went during the last month from; 

• Monthly — buy.
• Weekly — sell.
• Daily — strong sell.

Charts for daily transactions are hard to find for Polymesh. However, on Subscan, we can find the daily transfer amount. The average over the last three months varies between $3 and $10 million. There are occasional days that it peaks between $20 and $40 million. On rare occasions, the daily transfer amount exceeds $60 million.

Next up are unique wallets. Subscan tells us that over the last three months, we saw an increase of 326 unique accounts. It’s now at 11,379 accounts. Daily active accounts are between 30 and 60. So, the number of new accounts is still low. There’s much more potential for growth here. 

Fundamental Analysis

The first thing in a fundamental analysis is to check for a website and the team. Polymesh offers both. Their core team has backgrounds in finance, technology, and law. Some team members have a background in Polymath. It looks like a solid and experienced team.

It seems that Polymesh secured a grant or raised $115 million in 2022. However, there’s no information on investors in this project.

Social media;

• On X/Twitter, the project has 20.6k followers but follows zero accounts. Interaction is low.
• Their Discord server has 3,340 members and also low interaction levels.
• There’s no known Telegram group that we could locate.
• Their LinkedIn page has 980 followers.
• On YouTube, there are 1,210 followers and 30 videos. The channel receives rare updates.

So, the numbers seem to be organic, except for X/Twitter. However, interaction is low on all outlets. 

What Problem Does Polymesh Solve?

Polymesh is a purpose-built blockchain. It’s an institutional-grade permissioned chain. This means that it is a controlled and private chain. It’s built for regulated assets. It wants to make the following features easier,

• Governance. 
• Identity.
• Compliance.
• Confidentiality.
• Settlement.

Polymesh is the result of Polymath’s shortcomings. You can trade the $POLY token 1:1 with $POLYX. Polymath is now an app built on Polymesh. It wants to fill the gap between security token technology on one side. On the other side, we find the needs of issuers, investors, institutions, and regulators.

There’s a KYC procedure in place to onboard Polymesh. This requires you, among others, to install their Polymesh wallet. If you would like to stake $POLYX, you will also need to go through the onboarding process. The KYC process is in place to remain compliant. Specific providers may need further verification.

Polymesh also offers confidentiality and privacy features. For this, it offers a Confidential Transaction Workflow. This partially works zk technology where available. However, it also works with mediators who can validate transactions off-chain. They digitally sign that a transaction is satisfactory. Now, the transaction completes on-chain and both parties digitally sign. The picture below shows what that looks like.

 

Source: Polymesh whitepaper

Who Is the Competition?

Let’s look at the 5 other RWA projects that list above Polymesh by market cap. Ondo, Mantra, and OriginTrail all 3 have green charts.  On the other hand, Pendle and XDC Network both have red charts, like Polymesh.

Polymesh already surpassed Centrifuge and Goldfinch by market cap. These are two RWA OG projects. It also has a great trading volume. So, we see Polymesh surrounded by projects with good fundamentals. However, it does cover a different market segment within the RWA sector. This makes it stand out and offers room for growth.

Is $POLYX deflationary?

The $POLYX token is not deflationary but inflationary. The team expects the majority of the 1 billion $POLY tokens to swap into $POLYX. However, the $POLYX supply is infinite, to fund block rewards. However, the reward mechanism is set up in a specific way. This sees enough $POLYX bonded, at any time, to support its PoS consensus mechanism.

There’s no information on vesting for either $POLY or $POLYX. However, all the total 1 billion $POLYX tokens are in circulation. The picture below shows the $POLYX flow.

Source: Polymesh whitepaper

How Many Holders Does $POLYX Have?

There are 5,608 $POLYX holders, with 11.379 accounts. There’s not a big increase in holders. However, there’s a steady but small monthly increase. Over the last three months, there were 300 new account holders. So, even when the price of $POLYX goes up, we see an increase in holders. That’s a good sign, since it seems that holders are not selling off their tokens. They rather seem to buy more $POLYX.

Source: Subscan

Where Can You Buy $POLYX?

$POLYX is available at various major CEXes. For example, Binance, HTX, Gate, KuCoin, or Crypto.com. However, there are also plenty of tier 1 CEXes that still don’t offer $POLYX. For example, Bybit, Coinbase, OKX, or Kraken.

Once we see more listings on tier 1 exchanges, we can potentially see an increase in price.

Does Polymesh Have a Strong Marketing Strategy?

There doesn’t seem to be a real marketing strategy in place for Polymesh. On their YouTube account, you can find 20 videos over the span of 2 years. That’s not a lot. This year saw only one new video to date. That’s already 3 months ago.

On X/Twitter, things are looking slightly better. There are almost daily activities, but with low interaction. The account does highlight project features and updates. However, with an account of 20.9k followers, there’s almost no interaction. 70-80 likes on a post are about the max we could find. This indicates the artificial growth of the account.

Conclusion

Polymesh finds itself in a hot crypto sector, namely RWA. In this sector, it takes a respectable 6th spot, measured by market cap. Currently, its market cap is $303 million. That market cap is too high to qualify it as a gem. So, instead, will $POLYX be able to do a 10x or better?

There are a couple of pros to this.

• It has good fundamentals, with a strong team.
• RWAs are trending and Polymesh went up 5 positions, measured by market cap, during last week.
• Slow but steady increase of $POLYX holders.
• $POLYX is available on various top CEXes.
• The platform is compliant.

However, there are also quite a few cons, for example,

• $POLYX is an inflationary token.
• Social media interaction is low and there doesn’t seem to be any effective marketing in place.
• Onboarding requires KYC.

So, Polymesh ($POLYX) can grow up to 10x from here, as max. A 5x is more likely, though, looking at the current market cap. However, RWA is a hot sector. Considering how little effort Polymesh puts into marketing, there could be more potential. Also, more listings could help a $POLYX price increase.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

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