Wednesday, June 23, 2021

QuickSwap (QUICK) gains 420% as Polygon’s (MATIC) L2 network attracts new liquidity

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Because the Ethereum community progresses alongside the gradual, regular path towards Ethereum 2.0 and the total transition to proof-of-stake, layer-two options have arisen as the perfect answer to the present challenges related to excessive fuel charges and community congestion.

One layer-two answer that has emerged as a best choice for decentralied finance tasks and merchants is Polygon, which over the previous week, has seen its value of its MATIC token climb towards new highs as a consequence of a surge in exercise on its QuickSwap decentralized trade (DEX).

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MATIC/USDT 4-hour chart. Supply: TradingView

Information from Cointelegraph Markets and TradingView exhibits that after hitting a low of $0.34 on April 25, the worth of MATIC rallied 161% over the following three days to succeed in a brand new all-time excessive at $0.897 on April 28.

QUICK rockets greater

Whereas the rise of Polygon has been completely coated by Cointelegraph, the venture’s principal DEX, QuickSwap, has up to now been overshadowed by the extra energetic exchanges on the Ethereum mainnet, like Uniswap and SushiSwap.

The sudden uptick in buying and selling quantity for MATIC over this previous week HAS resulted in a major improve in demand for QUICK. The led to a 420% improve in QUICK value from $189 on April 25 to a brand new all-time excessive at $977 on April 27 because the trade token’s buying and selling quantity reached $18.9 million in a 24-hour interval.

QUICK/USD 1-hour chart. Supply: CoinMarkeCap

Exercise on the trade was comparatively flat all through the month of April till new partnerships on Polygon mirrored buyers growing bullish sentiment.

Demand for Polygon-based tokens has been on the rise due to a rising listing of big-name tasks which have bridged to the layer-two answer, together with a March 31 announcement from DeFi lending platform Aave.  After Aave introduced that it might launch on the Polygon community, the quantity of AAVE locked within the platform surpassed $1 billion. 

A number of nonfungible token (NFT) tasks together with OpenSea and Decentraland have additionally migrated to Polygon and can be found on the QuickSwap DEX, additional serving to to spice up exercise on the platform.

Liquidity and quantity on QuickSwap reached new file highs on April 27 because the 24-hour quantity on the DEX surpassed $190 million, and the overall liquidity is now above $287 million.

QuickSwap liquidity and 24-hour quantity. Supply: QuickSwap

As DeFi exercise begins to rise once more and a rising variety of analysts start to foretell {that a} new altcoin season is within the works, the Polygon ecosystem and its QuickSwap DEX may pull in additional liquidity, particularly if Ethereum customers select to make use of the MATIC bridge to shift over to a layer two-based, low-fee atmosphere.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer includes threat, and it’s best to conduct your personal analysis when making a choice.