The team behind Polygon, the protocol dedicated to interconnected blockchain networks like Ethereum, and Alexis Ohanian’s Seven Seven Six venture capital company have revealed a $200 million investment fund in blockchain-based social media projects. The announcement stated that the partner’s mission was to try to connect blockchain, Web3 technology and social media.
Polygon and Alexis Ohanian’s Seven Seven Six Launch $200 Million Fund Dedicated to Web3, Blockchain, and Social Media
Polygon and Alexis Ohanian’s firm Seven Seven Six plan to bolster Web3 technology with social media via blockchain compatibility with an investment of $200 million, according to the Polygon team’s most recent blog post. Polygon is most well-known for its scaling enhancements using the open-source blockchain network Ethereum, and its native token MATIC. Alexis Ohanian, Steve Huffman and Aaron Swartz are well-known for founding Reddit, a social media news and news aggregation website. Ohanian’s venture capital company Seven Seven Six is a software-enabling venture firm founded in 2020.
“Polygon and Alexis Ohanian’s Seven Seven Six have created a $200 million initiative that will back projects at the intersection of social media and Web3, exploring better ways for humans to connect online,” the Polygon team detailed on Friday. Web3’s motivation is to create a better Internet, one that empowers users across platforms. It’s a response to the pervasive sense that the current web3 as it exists today has drifted too far from the open-source early Web ideals .”
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The Polygon team added
The result is, as one Facebook engineer famously quipped, the best minds of our generation are thinking about how to make people click ads. Polygon’s mission, according to Polygon, is to provide a wide variety of Ethereum scaling and infrastructure solutions that are secure, quick, inexpensive, energy-efficient, and cost-effective for developers. This will enable them to create Web3 applications around the globe.
Alexis Ohanian – ‘Web3’s Most Obvious Opportunities Now Are Gaming and Social ‘
The announcement to invest $200 million into social media and blockchain platforms follows Polygon’s recent acquistion of the Mir protocol. After previously acquiring the Hermez Network (now Polygon Hermez) for $250 million in August, Polygon paid $400 million for the Ethereum scaling startup Mir. Seven Seven Six Ventures, Ohanian’s venture company, has made a number investments in blockchain and Web3 such as Sky Mavis and Droneseed. Better Brand and Stoke Space are also among them. Ohanian recently backed the NFT project Heir co-founded by NBA legend Michael Jordan and his son Jeffrey Jordan.
” We are still in the early stages of Web3 and there are many opportunities in social and gaming,” Ohanian stated in a statement. This initiative will accomplish exactly that. It will focus on social media platforms and gaming properties built on Polygon’s scalable infrastructure. “We’ve seen some of our best product founders start building on Polygon, and I’m excited that Seven Seven Six and Polygon will play a major role in shaping the future internet,” Reddit co-founder said.
What do you think about Polygon and Alexis Ohanian’s Seven Seven Six investing $200 million into blockchain and Web3 technology tethered to social media platforms? Please comment below to let us know your thoughts on this topic.
Jamie Redman
Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 4,900 articles for Bitcoin.com News about the disruptive protocols emerging today.
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Ethereum Price Analysis: What Lies Ahead for ETH on its Way to $3K?
Ethereum is showing signs of short-term exhaustion after a strong impulsive rally. Although the buyers have managed to break through major resistance levels, the price is currently stalling around a key structure and could be at risk of a local top if momentum fades.
Technical Analysis
The Daily Chart
ETH has decisively broken above the 100-day moving average, located around the $2,100 area, and is also trying to reclaim the 200-day moving average near the $2,600 mark. Moreover, the RSI is hovering in the overbought territory, signalling that the rally might be overextended in the short term.
Currently, the asset is consolidating just below the lower boundary of the previously broken long-term ascending channel. A daily close above this level would invalidate the idea of a pullback and open the door toward the $3,000 zone, which coincides with a prior supply area. On the downside, the $2,150 zone now acts as solid support and could serve as a potential re-entry point for buyers if the market pulls back.
The 4-Hour Chart
The 4-hour timeframe shows ETH consolidating within a narrow range around the $2,600 level. The price is maintaining its gains following the breakout from a descending channel and a series of bullish imbalances filled along the way.
The RSI has also cooled off, showing a decline in bullish momentum but no immediate signs of bearish divergence. If ETH can break and hold above the $2,600 zone, it may gather enough strength to run toward the key $3,000 resistance level soon.
Onchain Analysis
Exchange netflows remain negative on aggregate, with a recent reading showing a net outflow of over 170K ETH. This indicates a broader trend of accumulation and long-term holding, as coins continue to leave centralized exchanges and move into self-custody. Persistent outflows during a price rally typically support the case for bullish continuation as they reflect a lack of intent to sell.
However, it’s worth noting that this behavior also raises caution, as extreme bullish positioning can lead to sharp corrections if the sentiment becomes too one-sided. Traders should monitor changes in netflows closely, especially if inflows begin to spike around major resistance levels, as that could mark local tops and signal profit-taking.
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Crypto Price Analysis May-16: ETH, XRP, ADA, SOL, and HYPE
This week, we examine Ethereum, Ripple, Cardano, Solana, and Hype in greater detail.
Ethereum (ETH)
Ethereum had another impressive week with a 15% price increase after it managed to hold above $2,500, which is currently acting as a key support. As long as this level holds, buyers have a good chance to take the asset higher.
The resistance is found at $2,870, which will likely put sell pressure on the price if it arrives there in the future. Considering that the recent rally was quite aggressive, it would be unlikely for ETH to continue up uninterrupted without a pullback.
Looking ahead, Ethereum remains bullish, but the momentum has been decreasing lately. This is why a consolidation between $2,500 and $2,870 should be expected before the next attempt at higher levels.
Chart by TradingView
Ripple (XRP)
XRP managed to move briefly above $2.6 this week, but sellers were quick to return at that key resistance and pushed the price back under $2.5 at the time of this post. Nevertheless, the asset closes the week with a 5% increase.
With another higher high confirmed on the chart, XRP seems determined to get closer and closer to the $3 resistance, which acts as a magnet for the price. As long as the support at $2.3 holds, buyers have a good shot at that.
Looking ahead, XRP wants to revisit $3. To be successful it will have to turn $2.6 into a key support. For now, this level still acts as a resistance, but will likely break if this bullish momentum persists.
Chart by TradingView
Cardano (ADA)
ADA is found between two key levels: the support at $0.64 and the resistance at $0.9. So far, the price has failed to escape this large range and only managed to book a 2% increase this week.
Cardano also entered a pullback after it reached $0.86, and sellers managed to take it down to $0.75, where buyers returned to defend the price. Despite this correction, ADA remains bullish with clear higher highs. The next push will likely test the resistance at $0.9 for the first time since March.
Looking ahead, ADA’s uptrend continues, and its first major test is still to come. If buyers break above $0.9, then this coin has a good shot at reclaiming a price above $1, like it did in late 2024.
Chart by TradingView
Solana (SOL)
After Solana touched the resistance at $186, the price entered a pullback, which is still ongoing at the time of this post. Still, SOL managed to secure a respectable 5% price increase this week.
The pullback could continue for some time before buyers regain control. This can be seen on the momentum indicators, such as the MACD and RSI, which are currently falling. Until they reverse, the correction is likely to continue.
Solana’s native token has rallied by 80% since its bottom at $95. Considering this recent performance, it’s possible SOL corrects to the $152 support before buyers dare to challenge the resistance at $186.
Chart by TradingView
Hype (HYPE)
HYPE is the second-best performer on our list with an impressive gain of 10% this week. This has allowed the price to stay above the $24 support and grind higher with a clear target at $28.
This latest push could be the last one before a major correction starts. This is likely considering that the last time HYPE visited $28, its price entered a sustained downtrend that saw it crash by 67%. If buyers initiate another leg-up, then the $28 resistance is a prime candidate.
Looking ahead, HYPE can remain bullish until the $28 resistance is tested. At that point, it’s best to be cautious as bears could return to push this cryptocurrency into a major pullback, which hasn’t happened since early April.
Chart by TradingView
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Here’s What Can Send ETH Above $3K: Ethereum Price Analysis
Ethereum has extended its bullish rally, rising sharply toward a critical multi-timeframe resistance zone. The asset is showing strong momentum, but it’s now approaching a confluence of technical barriers that could either trigger a continuation breakout or a healthy retracement.
Technical Analysis
The Daily Chart
ETH has pushed through multiple resistance zones and is now testing the $2.6K—$2.7K region. It aligns with the 200-day moving average and the lower boundary of the long-term channel, which was broken to the downside weeks ago.
The RSI is also now in overbought territory, printing above 75, hinting at potential exhaustion. A daily close above $2.7K would confirm a bullish breakout and open the door to $3K+, while rejection from this level could pull ETH back toward the $2.2K support level.
The 4-Hour Chart
The 4-hour chart shows a textbook breakout from a descending channel followed by strong bullish follow-through. The asset is consolidating just above the $2.6K zone after a vertical leg higher.
There’s still room to stretch toward the $2.8K area, but the current sideways price action combined with a declining RSI suggests cooling momentum. A break below $2.6K could trigger a short-term correction toward $2.1K before the next leg.
Sentiment Analysis
Funding rates across all major exchanges remain slightly positive, reflecting bullish market sentiment. However, they are not yet at extreme levels, indicating the rally may still have fuel left. Ethereum’s open interest has also climbed significantly alongside the price, suggesting new positions are entering the market rather than closing out shorts, typically a sign of genuine momentum.
That said, traders should remain cautious. The elevated RSI on the daily chart and crowded positioning shown by the rise in funding rates could set the stage for a short-term flush if ETH gets rejected at key resistance. Historically, such sentiment surges have been followed by local tops or consolidation phases.
Monitoring funding spikes and open interest behavior over the next 24–48 hours will be critical to gauge whether this rally can extend further or if a pullback is on the horizon.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.