Polygon (MATIC) is making a splash in the crypto world, surpassing Ethereum (ETH) in a key metric: user activity. The network’s blazing-fast transactions and miniscule fees are attracting a growing user base, with daily transactions exceeding even those on the blockchain giant it’s built upon, Ethereum. Reports suggest the number of active users is nearing 10 million, driven by the ease and affordability Polygon offers.
This user migration might seem like a competition, but it’s more like a helping hand. Polygon isn’t a rival to Ethereum; it’s a Layer-2 solution, functioning more like an extension cord that streamlines the user experience for the Ethereum network. In the long run, a thriving Polygon ecosystem could even benefit Ethereum by alleviating transaction congestion.
While the network itself is thriving, MATIC, Polygon’s native token, hasn’t quite mirrored that growth yet. The token dipped slightly in early June, hinting at potential selling pressure. However, there are positive signs. On Balance Volume suggests some selling, but a positive Chaikin Money Flow indicates that money might still be flowing in, possibly from larger investors accumulating MATIC despite the short-term dip. Additionally, data suggests increased buying by smaller investors, viewing the price drop as an opportunity.
Despite the price lull for MATIC, the Polygon blockchain is shining in the Decentralized Finance (DeFi) sector. Its features, like the Proof-of-Stake system, zero-knowledge Ethereum Virtual Machine (zkEVM), and Chain Development Kit (CDK), are becoming developer favorites. These tools are attracting innovative new DeFi projects to Polygon, making it a hotbed for DeFi development. Aave, QuickswapDEX, Balancer, Azure Protocol, and Polymarket are just a few of the dApps built on Polygon.
Also Read: Polygon (MATIC) Stuck In Two-Month Range: Will June Ignite A Breakout Or Bring More Woe?
Further boosting its DeFi appeal, Polygon recently announced the launch of EURC (EURC.e) on its zkEVM. This zkEVM promises a highly scalable and secure solution for Circle’s EURC, lowering transaction costs and boosting throughput while maintaining the security of the Ethereum base layer.
With user activity skyrocketing and developer adoption growing, Polygon is poised to play a significant role in the future of blockchain technology. While MATIC’s price may need some time to catch up, the innovation happening on the Polygon network is undeniable.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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