The exponential growth in the decentralized financial sector has increased Ethereum blockchain activity, resulting in slow transaction times and incredibly high fees.
The price of ETH has also risen by more than 100% in the last month, and gas prices are on the rise again as the demand for Ethereum accelerates and the DeFi sector returns.
Matic Network intends to solve the scalability issue with DeFi and decentralized applications through the use of Tier 2 technology for off-chain computing.
Multiple side chains can be used simultaneously, and each is protected by a group of validators by proving its own stake system. The results are then sent to the Ethereum network, and checkpoints are created.
The project aims to become blockchain-independent, which will allow for the use of interoperable assets in the future. The Matic Network is currently based on the ERC-20 standard, and the market value of its MATIC token is $ 156 million.
With support from Coinbase Ventures and Binance Launchpad, the project raised $ 5 million during its first trading offer in April 2019. A number of well-known projects have integrated the Matic network infrastructure, including Decentraland and Maker.
Since January 1, the MATIC rate has increased by 92%, but the token is still 23% below the December 2019 record of $ 0.44.
4-hour chart MATIC / USDT. Source: TradingView
Matic started deposit and withdrawal operations on the main network on June 20, 2020, and a few days later it began to offer betting chances. Token holders can then delegate their bets to the auditors and share the proceeds.
On September 10, 2020, Matic released the Proof of Stake token bridge, which enables faster transfers between Ethereum and Matic networks.
Since August 2020, the decentralized Matic BEPSwap exchange is in beta, and liquidity has decreased approximately 25% from its peak of $ 40 million.
In September 2020, Matic Network launched its final deployment phase, adding a community validation contract and increasing the number of tracks to 100. The team intends to phase out all Matic Foundation nodes so that the community can choose from among the publicly available validators.
DeFi & Altcoin season appears to be pushing MATIC higher
In recent weeks, Matic Network has decided to launch several projects, including SkyWeaver, Aavegotchi Crypto Collectibles, Drakon IOI collectible game, and Fire Protocol OS.
Additionally, the MATIC token was registered with Huobi Global on January 6 and offered a $ 80 bonus to new users who signed up with full KYC verification.
Matic Twitter user activity for price (in USD). Source: Tie
Data from The Tie shows that the recent price spike has been accompanied by a surge in social media, but it’s hard to determine whether Twitter’s growth is the main driver of MATIC’s price activity.