Ethereum scaling solution Polygon’s Matic explodes by 10% as ecosystem gains steam with second most daily active users

  • Over the last month, the daily active users on the Polygon blockchain have jumped along with a jump in whale transactions.
  • Polygon remains a preferred choice in the DeFi space as the total value locked increases to $1.1 billion.

Altcoins have been performing phenomenally well since the beginning of 2023. Ethereum’s Layer-2 scalability platform Polygon has been one of the top performers during this market rally and now has also been the part of top-ten cryptocurrencies by market cap.

Over the last 24 hours, Ethereum’s scaling tool Polygon- MATIC) is up by more than 12% continuing its momentum further. As of press time, MATIC is trading at a price of $1.08 and a market cap of $9.4 billion.

However, the recent price rally in Polygon’s MATIC comes on the backdrop comes amid a strong surge in the daily transaction on the Polygon blockchain. As per the data from Token Terminal, Polygon is the second-largest blockchain measured in daily active users (DAU). Currently, the daily active users on Polygon are close to 350,000 and the only blockchain above it is the Binance Chain.

The strong user activity on the Polygon blockchain comes on the backdrop of major developments and partnerships in the Polygon ecosystem. The Ethereum scalability platform has partnered with some of the top brands such as Nike, Starbucks, and Meta.

Earlier this month on January 17, the Polygon blockchain underwent a switch in BaseFeeChangeDenominator value that allowed users to continue further activity at lower gas prices. This topo has served as a catalyst for the MATIC price to continue its rally.

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Earlier this week, Web3 gaming platform Fractal announced that it is coming to the Polygon blockchain wherein it will launch its developer SDK, non-fungible tokens (NFT) launchpad, tournaments, marketplace, game launcher, and Sign-in with Fractal service.

MATIC Whale Transactions and Polygon TVL

As the MATIC price has surged by nearly 40% since the beginning of 2023, it comes on the backdrop of rising whale transactions. On-chain data provider Santiment reported:

MATIC has seen a dramatic rise in whale transactions on its network over the past month. Commenting on the rising user activity on the Polygon blockchain, Charles Storry, head of growth at crypto index platform Phuture, said:

We’re starting to see users and interest come back to these kinds of networks and seeing activity again. There’s also a lot of projects that have built on top of Polygon that haven’t released their tokens yet, which will be coming out soon and add to the already increasing activity levels.

Besides, the DeFi activity on the Polygon blockchain is also on the rise as the network has a total of $1.1 billion total value locked (TVL) as per the data provided by DeFi Llama. Storry added:

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We are seeing mass TVL increases for riskier projects and early-stage applications. In a bear market, investors are more conservative and don’t want to take on huge risk, but now prices have picked up a little, they are more open to newer and riskier ecosystems like Polygon.

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About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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