Despite the massive cryto market crash of May 2021, a few cryptocurrencies and networks seem to have withstood that drop and one of these is Ethereum Layer 2 Scaling solution, Polygon, and the platform’s token, $MATIC.
At a time when almost every major crypto suffered losses, with Bitcoin dropping as much as 35%, MATIC was able to withstand the downdraft and gain 120% while pushing its rankings up to the top 20 cryptos by market capitalization.
Below are some stats on Polygon in May 2021 combined with a few facts that have contributed to this massive growth:
- Ethereum fees have skyrocketed up 845% throughout 2021 so far
- Currently, a transaction on Ethereum for $200 costs roughly $5 while on Polygon it only costs around $0.001
- The price of MATIC has gone up roughly 18, 500% so far since January 2021
- In May 2021, the price of MATIC rallied 120% even as Bitcoin fell by 35%
- The number of Daily Active Addresses on the Polygon network is up almost 20x since January 2021
- In May 2021, Polygon user base surged by 285% – up from 7, 500 to over 28, 870 users
- In May 2021, Polygon’s leading DEX, QuickSwap, saw a 302% increase in daily unique users to over 10, 000
- In May 2021, QuickSwap liquidity on Polygon increased by 68% to over $924 million
- In May 2021, unique addresses using Aave protocol on Polygon shot up by 156% to over 15, 700 users
- In May 2021, Aave saw over $5 billion in liquidity via Polygon
- The development activity in Polygon GitHub repository is very high both in terms of growing Commits as well as Open Issues and Stars, showing a healthy ecosystem
Speaking about the longevity of Polygon despite the much-hyped Ethereum 2.0 upgrade, and the subsequent deployment of sharding on the network, which is expected to bring down fees, Sandeep Nailwal, CEO, Polygon, said:
“Ethereum 2.0 will become 64 times more scalable than Ethereum is now, but the demand is 1,000 times than where we are. You will need L2 scalability.”
– CEO, Polygon
Polygon can be best described as a Layer 2 protocol and framework to build Ethereum-compatible blockchain networks.
It has been developed to increase transaction output and drastically reduce fees, without compromising on security.
RECOMMENDED READING: Layer 2 Solution, Arbitrum, is Coming to UniSwap v3, Confirms UniSwap CEO
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