MATIC reached a new high of 1.20 US dollars, after Polygon Curve last month.Fi, decentra country and sushi swap, built-in
Polygon (MATIC) has recently been flying high and has increased by more than 53% in the last seven days and by more than 33% in the last 24 hours alone. After MATIC broke the $ 1 mark for the first time on Sunday, the cryptocurrency reached a new all-time high (AZH) of $ 1.20 this morning. But what is behind the latest rally?
Polygon is an Ethereum platform for scaling and developing infrastructure. It can be used to implement numerous different types of applications as well as layer 2 scaling solutions such as optimistic rollups and cc rollups.
A major reason for MATIC’s newfound popularity may therefore be concerns about Ethereum scaling. The average transaction fee on Ethereum is currently almost $ 70. Scaling is an important issue for many Ethereum users, but in March, the launch of Optimism, Ethereum’s Layer 2 project, was delayed, allowing other projects such as Polygon to catch up.
The high gas fees also prompted various projects to move to Polygon. One of these projects is Aave, which switched to Polygon at the end of March to avoid the Ethereum traffic jam. Polygon boasts a block confirmation time of less than two seconds and up to 65,000 transactions per second on a single sidechain. Aave’s TVL (Total Value Locked) has more than doubled in the last month.
Last month, Curve Finance launched a liquidity pool on Polygon and the blockchain-based VR world Decentraland enabled users to move their MANA from Ethereum to Polygon. The latter was part of a larger effort to integrate all Decentraland dApps (distributed apps) on Polygon. Just last week, even sushi swap started on Polygon.
All these activities on Polygon have resulted in an explosive increase in the number of users on the network and a steady increase in the number of MATIC addresses. According to data from CoinMarketCap, MATIC’s trading volume has increased by about 100% in the last 24 hours alone.
In the future, many more dApps and users could migrate to Polygon. At the end of April, Polygon announced the launch of its $ 150 million #DeFiForAll fund. The aim is to integrate the next million users into decentralised finance (DeFi) by making it more accessible and cost-effective.
Since MATIC reached an AZH this morning, its price has fallen back to $ 1.15 at the time of writing. Polygon’s market capitalization today exceeded $ 6 billion for the first time. In view of the many developments in the network, however, there is still great potential for growth.