While the crypto market dealt with volatility, the Polygon network witnessed increased usage. Over the past few months, MATIC saw a relative organic meteoric uptick. Investors found Polygon as an alternative to Ethereum that saw transaction count flattening because of its overpopulated network. Here are the three reasons that initiated the move.
- Transaction Count
According to data by Joel John, MARIC had its transaction count per day hitting its record high at 7.4 million. Remember, Polygon is a Binance Smart Chain supported network with a small ecosystem of DeFi applications that were battle-tested on ETH earlier.
Meanwhile, Binance Smart Chain (BSC) saw transaction count surging in May, increasing from under 1 million per day to a whopping 11 million per day. As Polygon followed the uptrend, the ETH Transaction count was still below 2.5 million per day.
As investors run away from the high fees from utilizing DeFi Apps on the ETH network, Polygon rendered similar decentralized finance applications, but with reduced charges. That drew DeFi enthusiasts seeking the experience. Keep in mind that DeFi attracted multiple financial institutions over the past month, among the reasons behind Ethereum success. However, Aave and QuickSwap were vital in Polygon’s surge.
QuickSwap, a polygon’s version of Uniswap, boarded more distinctive than other DApps.
QuickSwap saw 107K new users linked to the increased DeFi projects. However, it allows more than 10,000 swaps consistently, proving that customers utilized the lower transaction charges to their best. The average swap value rose to its highest over time, $30,000 from $186. However, due to the current market pullback, swap value declined to beneath $5,000.
- Adoption and Interest
MATIC kept with the positivity surrounding the crypto community as the Polygon’s token maintained above $1. MATIC’s market cap stands at $8.08 billion, as it trades at $1.44 at this writing. Google trends indicate an increased interest in the token over the past year. Mark Cuban, who had invested in Polygon, has been supporting the project.
In 2021 Feb, MATIC had its market cap at $200 million. Its prices four months later reflect the increase in coin’s fundamentals. The surge amplified HODLers, MATIC traders.