Lately, Layer 1 solutions like Solana (SOL) and Cosmos (ATOM) have gained prominence thanks to the faster transaction times and lower fees of each network compared to the Ethereum network. An even bigger focus is on Layer 2 solutions, which can help Ethereum keep up with the competition while it continues to move towards proof-of-stake.
One project where user activity and transactions have steadily increased over the past two months is Polygon (MATIC), a platform for scaling Ethereum and developing its infrastructure.
Data from Cointelegraph Markets and TradingView show that MATIC price has risen 50% to $ 0.39 from the $ 0.26 low when the market sold off on April 18 as adoption of this expanding L2 platform soared begins.
Popular projects are migrated to Polygon
Following the announcement in early February that the Matic network will be renamed Polygon as part of its efforts to become the L2 aggregator for the Ethereum network, the protocol has seen a significant increase in user and project adoption.
Polygon, the top #Ether Shift 2 is going crazy!
Integrations with Aave, Pooltogether, Sushiswap, Open Sea, Curve Finance, Decentraland and many other large companies #defi Applications.
TVL on Aave on Polygon is approaching 1 billion. $ matic undervalued
– Lark Davis (@TheCryptoLark) April 25, 2021
Since the rebranding, several decentralized finance (DeFi) and non-fungible token projects have made the decision to integrate with Polygon to take advantage of the fast, low-cost environment.
The more significant DeFi integrations include the decentralized exchange SushiSwap (SUSHI) and Curve Finance (CRV) Open sea, Decentraland (MANA) and Aavegotchi (GHST) are large NFT communities that are now using the Polygon Network.
On March 31, the popular DeFi credit platform AAVE announced The company explored “new frontiers of scalability” with Polygon and the subsequent launch of AAVE for the L2 solution quickly grew to $ 1 billion in liquidity and more than 7,200 users just 10 days after launch.
A great day for @ 0xPolygon and the entire Ethereum ecosystem!
$ 1 billion in liquidity and $ 7.2,000 for a single application, 10 days after launch!
A big thank you to the amazing @AaveAave Team and the entire Ethereum community!
This is just the beginning, stay tuned! pic.twitter.com/wqvoOLgNbT
– Mihailo Bjelic (@MihailoBjelic) April 24, 2021
The DEX volume increases
Popular decentralized exchanges like Uniswap and SushiSwap have been a major catalyzing force in the growth of DeFi and the entire cryptocurrency sector over the past year, demonstrating the importance of a properly functioning DEX to the growth of the ecosystem.
While SushiSwap is a protocol that, along with numerous other blockchains, has made integrations into the Polygon network, QuickSwap DEX is a project that focuses solely on increasing the available liquidity for the Polygon ecosystem.
As can be seen from the charts above, QuickSwap’s liquidity and trading volume rose rapidly from the end of February, and this trend continued into March. In the past two weeks, the volume on the platform has increased noticeably, in line with recent Polygon adoptions.
The increased activity on decentralized exchanges is due in part to the growing list of projects now available on Polygon. A quick scroll through 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), to name just a few.
In the future, a growing number of Ethereum-based projects will likely be looking for a faster, more affordable environment that will also allow them to stay on the top smart contract platform. There is a potential for significant upside potential when they move to Polygon, and the current growth in MATIC price and the rising TVL of QuickSwap are both evidence that the protocol is a strong Layer 2 contender.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.