Key Insights: BlackRock BUIDL transferred $500 million to Polygon, boosting its real-world assets (RWA) sector Polygon RWA sector is now the third-largest among all blockchain networks, behind Ethereum and ZKsync Era. The Polygon network is experiencing a resurgence, but its POL token has yet to recover from earlier losses. BlackRock’s Digital Liquidity Fund (BUIDL) has increased its size on the Polygon sidechain as part of its continued expansion. Signs of the deployment first showed onchain with the movement of $500 million to BUILD on Polygon. Polygon founder and CEO Sandeep Nailwal confirmed the deposit, highlighting its massive size. He posted: “Blockrock BUIDL goes brrrr on @0xPolygon – USD 500m in one shot!”
BlackRock BUIDL Deposit is a Vote of Confidence for Polygon BUIDL, which launched in 2024 in partnership with Securitize, focuses on US Treasury bonds, repurchase agreements, and bonds. With a circulating supply of around $2.9 billion, primarily on Ethereum, the fund expanded to other networks, including Aptos, Arbitrum, Optimism, and Avalanche. However, its allocation on the networks has been very low until now, signaling a sign of expansion outside the Ethereum ecosystem. A few days ago, BUIDL had also deposited $500 million on Aptos, causing the RWA sector value on the network to surpass $1.2 billion. Aptos is now the network with the second-highest value of BUIDL tokens. Still, the massive fund transfer to Polygon is seen by many as a vote of confidence in the network. Before now, the value of BUILD tokens on Polygon was around $30 million. With the recent deposit, the total value has now increased to $530.5 million, representing an increase of over 1,400% in the past 30 days.
With the sizable increase, the market share of BUIDL on Polygon has now increased to 13% of the RWA value on the network. This has also further cemented Polygon’s position as one of the leading RWA networks. It comes only behind Ethereum and ZKsync Era in total value, with $1.643 billion. Unsurprisingly, BlackRock BUIDL’s recent deposits contributed to the surge, as the Polygon RWA value increased by 41% over 30 days, while its market share now stands at 7.55%. Nevertheless, Ethereum remains the biggest RWA network by far, accounting for 51.7% of the total market share.
Polygon Network on Rebound Even as Tokens Remain Down Meanwhile, the increase in BUIDL allocation to Polygon could serve as another catalyst for the network’s resurgence. The Ethereum sidechain has been on an uptrend since the restructuring in June, with onchain metrics showing more adoption.
According to Artemis data, the network’s daily transactions have doubled this year, increasing by 104% to 31 million across all the products on the network. It has also emerged as the most widely used chain in Latin America, crossing $2 billion in DEX volume for the first time in six months last week. Despite the improvements, the POL token remains down in the dumps with a 58.84% decline year-to-date. However, it is up almost 9% in the past seven days.