Polygon, a Layer 2 blockchain, has been making waves in the crypto space with its remarkable growth trend in recent weeks. Thanks to its lower fees and faster transactions, daily active users on Polygon’s Layer 2 blockchain have surged, surpassing even some of the largest Layer 1 blockchains in the world.
Traditionally, Ethereum has been the dominant blockchain in terms of daily active users, mainly due to its thriving decentralized finance (DeFi) ecosystem. However, the high fees on Ethereum have driven DeFi enthusiasts towards Layer 2 blockchains like Polygon, seeking more cost-effective alternatives.
As a result of this migration, Polygon has experienced a consistent surge in its daily active users, overtaking both Ethereum and Solana. According to data from DeFi aggregator website DeFiLlama, Polygon currently boasts an impressive total of 405,084 daily active users, compared to Ethereum’s 332,000. This means that Polygon has gained over 50,000 more daily users than Ethereum and also outpaced competitors like Arbitrum and Solana.
Polygon is also making strides in the DeFi protocol arena, coming close behind Ethereum and Binance Smart Chain (BSC) with a total of 445 protocols. Ethereum currently has 855 protocols, and BSC follows with 629 protocols, cementing Polygon’s position as the Layer 2 network with the highest number of DeFi protocols.
The positive impact of Polygon’s growth is evident in the price of its native token, MATIC, which has surged by over 7% in the past 24 hours. This impressive performance makes MATIC one of the top 10 performers in the crypto market. If the network growth continues to drive the price upwards, MATIC could potentially retest the $0.85 resistance level by the end of the week.
MATIC’s rise has also led to bullish momentum in the short term, with the cryptocurrency surpassing the 50-day moving average. However, it still lingers below the 100-day and 200-day moving averages, suggesting that the current rally may be relatively short-lived.
Despite this, the surge in MATIC’s price can be sustained for now, as trading volume has seen a significant uptick of 548% in the last day. This heightened interest indicates growing enthusiasm from both small and large players in the market.
As Polygon continues to attract more users and expand its DeFi ecosystem, it is positioning itself as a formidable player in the blockchain space, with the potential for further growth and positive price momentum for MATIC in the foreseeable future.
