One of the notable risers of the last week has been MATIC, the currency of the Polygon project. It’s now at spot 15 in the list of biggest crypto currencies in terms of market capitalisation. We sum up what explains this rise and what’s in the works.
Polygon (formerly Matic Network) was founded in 2017. It was the first well-structured platform to build scalable applications on Ethereum. As we all know, Ethereum has challenges, stemming from its own popularity. Users have to wait for a long time and pay a lot for their transactions. The Matic network was one of the first so-called layer-two solutions (L2s) that helped relieve the pressure on the Ethereum blockchain. A strategic advantage of Matic is that it has not chosen one particular technique of scalability. Thus, it hedges it bets and is prepared, regardless of which scalability solution will become dominant.
Since Matic Network started calling itself Polygon, its ambition is greater: to build a network of blockchains that are all compatible with Ethereum. With Polygon, developers can quickly "plug together" their own blockchain or app. This process is very similar to developing on Ethereum, making it easy to use for the largest community of developers in the world.
1. An increase in active addresses
The number of users on the network continues to grow steadily according to intotheblock.
2. A growing ecosystem
For example, currently, the Uniswap community is voting on whether Uniswap v3 should support MATIC. Uniswap is one of the largest decentralized exchanges (dexes). The first round of voting turned out to be in favour of MATIC support.
3. More and more institutional interest
For example, Osprey set up a Polygon trust in September 2021. Recently, Wintermute, which specializes in crypto, invested 20 million dollars to boost the creation of apps on Polygon.