Wednesday, June 23, 2021

Polygon (MATIC) jumps ahead as the race for Layer-2 adoption picks up

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Just lately layer 1 options just like the Solana (SOL) and Cosmos (ATOM) have grown in prominence thanks to every community’s quicker transaction occasions and decrease charges when in comparison with the Ethereum community. A fair larger focus has fallen on layer 2 options that may assist Ethereum sustain with the competitors because it continues its strategy of switching to proof-of-stake. 

One undertaking that has seen a gentle rise in consumer exercise and transactions over the previous 2 months is Polygon (MATIC), a platform for Ethereum scaling and infrastructure growth.

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MATIC/USDT 4-hour chart. Supply: TradingView

Information from Cointelegraph Markets and TradingView reveals that since hitting a low of $0.26 because the market offered off on April 18, MATIC worth has climbed 50% to $0.39 as adoption of this increasing L2 platform begins to ramp up.

Well-liked tasks migrate to Polygon

Following the early February announcement that the Matic Community can be rebrand to Polygon as a part of its effort to develop into the go-to L2 aggregator for the Ethereum community, the protocol has seen a big enhance in consumer and undertaking adoption.

Because the rebrand, a number of decentralized finance (DeFi) and nonfungible token-related tasks have made the choice to combine with Polygon to make the most of its quick, low payment atmosphere.

A number of the extra vital DeFi integrations embody the decentralized trade SushiSwap (SUSHI) and Curve Finance (CRV), whereas OpenSea, Decentraland (MANA) and Aavegotchi (GHST) are giant NFT communities that now make the most of the Polygon community.

On March 31, the favored DeFi lending platform AAVE announced that it was exploring “new scalability frontiers” with Polygon, and the following launch of AAVE on the L2 answer quickly grew to $1 billion price of liquidy and greater than 7,200 customers simply 10 days after launch.

DEX quantity will increase

Well-liked decentralized exchanges like Uniswap and SushiSwap had been a significant catalyzing power for the expansion of DeFi and the cryptocurrency sector as a complete over the previous yr, demonstrating the significance of a correctly functioning DEX for the expansion of the ecosystem.

Whereas SushiSwap is one protocol that has made integrations with the Polygon community together with quite a few different blockchains, the QuickSwap DEX is a undertaking that’s solely centered on growing out there liquidity for the Polygon ecosystem.

QuickSwap liquidity and 24-hour quantity. Supply: QuickSwap

As seen within the charts above, liquidity and buying and selling quantity on QuickSwap noticed speedy positive aspects starting in late February and this development continued all through March. Over the previous two weeks, there was a noticeable uptick in quantity on the platform and this corresponds with the current Polygon adoptions.

Elevated exercise on decentralized exchanges is partially as a result of rising record of tasks now out there on Polygon. A fast scroll by the undertaking’s Twitter feed reveals an extended record of current integrations together with IoTeX (IOTX), Everipedia (IQ), Gelato Network (GELATO), Simply Wager (WINR) and Umbrella Network (UMB), to call just a few.

Going ahead, it is seemingly {that a} rising variety of Ethereum-based tasks will search for a quicker, low-fee atmosphere that additionally permits them to remain on the highest sensible contract platform. In the event that they shift to Polygon, there’s a likelihood of great upside potential and the present development in MATIC worth and the rising TVL of QuickSwap each function proof that the protocol is a powerful layer-2 contender. 

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