The inevitable rise of Polygon (MATIC)

Ethereum scale – The network Ethereum is the birthplace of DeFi. Nevertheless, technical limitations can make blockchain extremely expensive to use. Fortunately, so-called second-layer solutions offer similar ecosystems, without the sky-high costs. Among these solutions, Polygon is on the rise.

Polygon continues to grow: 44 million new addresses

polygon is a so-called solution of second layer of the Ethereum network. Thus, it offers a blockchain that works in parallel with Ethereum, while inheriting its security.

On its blockchain, Polygon offers an experience similar to that of Ethereum in terms of possibilities, while offering much more affordable costs. Obviously, this promise kept attracting more users looking for the perfect DeFi ecosystem.

So much so that Polygon has seen its user base explode over the past 6 months. In practice, the network recorded the creation of more than 44 million unique addresses in the space of 6 months. Thus, between June and November 2022, the number of unique addresses on Polygon increased from 144 million to 188 million.

Evolution of the number of addresses on Polygon – Source: Polyscan.

In parallel, the network records between 2 and 3 million daily transactions. For comparison, the Ethereum network registers between 1 and 1.5 million daily transactions, half as much as Polygon.

A vibrant DeFi

Thanks to its low-fee environment, the network is obviously the birthplace of a thriving DeFi ecosystem.

Thus, Polgyon counts several hundred DeFi protocols, accumulating between them all a TVL of a little more than $1.13 billion. This makes Polygon the 4th largest DeFi chain behind Ethereum, BNB Chain and Tron.

Among the protocols deployed on Polygon, we find several spearheads of Ethereum’s DeFi. We can notably cite the giant Aavewhich is currently Polygon’s largest protocol with 25% of total TVL.

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MATIC: the token that outperforms everything

Obviously, the Polygon blockchain has its own token: the MATIC. This has two main functions:

  • Pay network fees on Polygon;
  • Serve as collateral for validators in the Polygon network.

Faced with the surge of users on the network, the MATIC token has also performed very well. Indeed, the MATIC course has notably outperformed that of Bitcoin and even Ether since June.

Evolution of the price of the MATIC in comparison with the BTC and the ETH.
Evolution of the price of MATIC in comparison with BTC and ETH.

Indeed, over this period, while Bitcoin and Ethereum recorded a respective fall of 34 and 27%, the MATIC token recorded an increase of 73%.

At the same time, Polygon is also a blockchain that has won the trust of institutional investors. So the giant JP Morgan recently revealed that it made its first transactions in the world of DeFi on the instance of the Aave protocol hosted on the Polygon network..

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