Ethereum Scaling Tool Polygon’s MATIC Token Surges Amid Spike in Transactions

This year, the token has increased by 48%. According to one research group, the blockchain has the second most daily active users.

Polygon’sMATIC token, an Ethereum scaling tool, has risen 12% in the last 24 hours, continuing its strong performance this year.

MATIC was recently worth $1.11. According to Token Terminal data, it is up 48% since December 31 due to an increase in daily transactions, which has pushed the blockchain to second place in terms of daily active users (DAU).

The rally comes amid a crypto market uptick in January that has seen Aptos’ APT token rise more than 400%, Fantom’s FTM rise about 145%, and bitcoin rise nearly 40%.

Polygon is ranked second behind Binance’s BNB chain, with 344,000 DAUs, ahead of Solana and Ethereum.

(Terminal for Tokens)

Polygon’s recently announced partnerships and launches, which have increased DAUs, could also be driving the price increase, as could Polygon’s mainnet launch of its zero knowledge-EVM. The mainnet will go live in early 2023. In October, the zk-EVM public testnet went live.

“We’re starting to see users and interest return to these types of networks, and we’re seeing activity again,” said Charles Storry, head of growth at crypto index platform Phuture.

“There are also a lot of projects that have built on top of Polygon that haven’t released their tokens yet,” Storry added.

According to DeFi Llama data, Polygon currently has around $1.1 billion in total value locked (TVL).

“We’re seeing widespread TVL increases for riskier projects and early-stage applications,” Storry explained. “During a bear market, investors are more conservative and don’t want to take on a lot of risk, but now that prices have risen slightly, they are more open to newer and riskier ecosystems like Polygon.”

“We will see more of that as the market continues to improve.”