- Polygon has shown great resistance despite the recent market crash.
- The project continues to show consistent growth, recently surpassing Binance Smart Chain and Ethereum in daily transactions.
Polygon’s MATIC grew 120 percent in May despite the Bitcoin crash that stirred worries among investors in the crypto market. Bitcoin, on the other hand, dropped 35 percent. Apart from Bitcoin, altcoins that also recorded losses included Ethereum (ETH), Polkadot (DOT), Cardano (ADA), Ripple’s XRP, and more. Also, the decentralized finance (DeFi) – blue chips also declined. As a result, the total crypto market valuation shed 24 percent.
MATIC ended May with a 120 percent increase
MATIC was able to survive through the May market crash due to the increasing use of Polygon Network’s Ethereum layer 2 scaling solution. Additionally, the reduced transaction fee on the Polygon network has led to increased activities on the blockchain. Transaction on the blockchain attracts a $0.001 fee.
On the other hand, Ethereum’s network transaction fees have climbed about 845 percent year on year. Transacting on the Ethereum network now costs around $4.819. With the low transaction fees on the Polygon network, the price of MATIC has jumped since the year began. As of January, MATIC was trading at $0.01. At the end of May, however, the token closed at $1.85. The surge in its price represents about an 18,500 percent spike.
MATIC’s outstanding performance, which affected several cryptocurrencies, shows that a token supported by solid fundamentals can survive on its own despite a general crash. As such, the token is positioned to soar further over the coming months. However, this growth position may be truncated if Ethereum transaction reduces.
MATIC saw a four-month run of gains
As MATIC recorded a four-month run of gains, other Ethereum rivals like Polkadot, Solana, and Binance Smart Chain suffered double-digit losses.
Even as MATIC proved strong against the Bitcoin crash, most of its gains occurred in early May. This was before the significant Bitcoin dip. MATIC gathered most of May’s gain in the first half of the month just before Bitcoin dropped from $58,000 to $30,000. Ahead of the BTC crash, MATIC had recorded an all-time high of $2.72.
Wu Blockchain noted in a tweet that transaction volume on a daily basis on the Polygon network had reached a record high of 7.4 million. This surpasses Ethereum and the Binance Smart Chain’s daily transaction volume.
The total daily transaction volume of the Polygon network reached a new high, reaching 7.4 million, exceeding the current total daily transaction volume of Ethereum and Binance Smart Chain. pic.twitter.com/MY4K835I3Y
— Wu Blockchain (@WuBlockchain) June 6, 2021
Furthermore, data provided by Covalent revealed that the average daily active users on Polygon grew 285 percent, jumping from 7,500 to 28,873. Covalent added that the number of unique addresses utilizing Aave protocol on the Polygon network also surged by 156 percent to 15,769 last month. In addition, average daily users on Polygon-based decentralized exchange QuickSwap shot up by 302 percent to more than 10,000. Also, the liquidity on the platform climbed 68 percent to $924.78 million.
Speaking on the remarkable performances of Polygon and QuickSwap, Yield app CEO Tim Frost commented:
The almost fee-less trading Polygon offers a breath of fresh air to seasoned DeFi traders that have been suffering under the weight of extremely high gas prices for some time now.