Recently, Tier 1 solutions such as Solana (SOL) and Cosmos (ATOM) have grown significantly thanks to faster per-network transaction times and lower fees compared to Ethereum. More emphasis has been placed on team 2 solutions that can help Ethereum keep up with the competition as it continues to move to Proof of Effort.
One project that has seen a steady increase in user and transactional activity over the past two months is Polygon (MATIC), a platform for Ethereum expansion and infrastructure development.
4-hour chart MATIC / USDT. Source: TradingView
Data from Cointelegraph Markets and TradingView shows that MATIC’s price rose 50% to $ 0.39, hitting a low of $ 0.26 when the market was selling on April 18, when the spread of this extended L2 platform started to rally.
Popular projects move to Polygon
After announcing in early February that the Matic Network would be renamed Polygon as part of an effort to become a Go-to L2 complex for the Ethereum network, the protocol greatly increased the use and acceptance of projects.
After the rebranding, many decentralized economies (DeFi) and non-exchangeable token projects decided to merge with Polygon to take advantage of its fast and low tax environment.
Some of the more important DeFi integrations include the decentralized centralized SushiSwap System (SUSHI) and Curve Finance (CRV), while OpenSea, Decentraland (MANA), and Aavegotchi (GHST) represent the large NFT communities that now use the Polygon network.
Popular lending platform DeFi AAVE announced on March 31 that it was exploring “new frontiers of expansion” with Polygon, and the subsequent launch of AAVE on its L2 solution quickly grew to $ 1 billion in cash and over 7,200 users only 10 days later. release.
DEX size is increasing
Popular decentralized exchanges like Uniswap and SushiSwap have been a significant catalyst for the growth of the DeFi sector and cryptocurrencies in general over the past year, demonstrating the importance of effective DEX to the growth of the ecosystem.
While SushiSwap is a protocol integrated with the Polygon Network along with many other blockchains, QuickSwap DEX is a project that focuses solely on increasing the fluidity available to the Polygon ecosystem.
QuickSwap’s liquidity and 24h volume. Source: QuickSwap
As shown in the charts above, QuickSwap’s liquidity and trading volume has increased rapidly since the end of February, and this trend has continued throughout March. The platform has grown significantly over the past two weeks, in line with the recent entry of Polygon.
The increased activity in decentralized exchanges is partly due to the growing list of projects currently available at Polygon. A quick glance at the project’s Twitter feed reveals a long list of recent integrations, including IoTeX (IOTX), Everipedia (IQ), Gelato Network (GELATO), Just Bet (WINR), and Umbrella Network (UMB), for example. A few few.
In the future, an increasing number of Ethereum-based projects will likely be looking for a faster environment with lower fees, which will also allow them to remain on a better smart contract platform. If they switch to Polygon, there is a chance of significant upside potential, and the current spike in MATIC and TVL QuickSwap spikes are proof that the protocol is a strong competitor to Team 2.