Polygon token price up 181% in the last 14-days
Ethereum startup and layer-2 solution Matic Network is rebranding to Polygon. Polygon announced the name change plus that it is now planning to address Ethereum’s transaction problems with a soon to come layer-2 software development kit (SDK) that will be able to host multiple technologies at once.
Exponential growth within the decentralized finance sector has significantly increased activity on Ethereum, resulting in slow transaction times and exceptionally high fees. As a result Matic, now Polygon has been enjoying record results.
As previously reported the price of the Polygon (MATIC) token surged recently and has continued. Up by 181% in the last 14-days and 216% over the last 30 at the time of writing.
Polygon previously ran a proof-of-stake Ethereum sidechain but this option is now being seen as not suitable to deal with the needs of DeFi dapps. While it will still be supported, version 1 of the SDK for layer 2 aggregation will be ready in March 2021.
Version 1 will support multiple layer 2 solutions such as Optimistic Rollups, zkRollups, and Validium, making it an L2 aggregator. It is hoped that this will enable projects to effectively select the scaling solution best suited to their project’s needs. It will also enable the creation of standalone chains like Polkadot’s substrate.
Looking at the top-ranked Polygon dapps on DappRadar ranked by volume shows that one dapp is driving the growth of DeFi on Polygon. QuickSwap is a decentralized exchange utilizing Layer-2 for transactions. Users are able to trade any ERC20 asset at fast speeds with near-zero gas costs.
Over the last 7-days, QuickSwap has generated over $2.6 million in transaction volume and increased users by over 50%.
Looking at the top 5 Polygon dapps ranked by volume shows more clearly the gulf between the first placed QuickSwap and other dapps. QuickSwap has generated over $2.6 million in volume over the last 7-days. Only Decentral Games and SportX, both gambling dapps, are getting anywhere near the volume observed on QuickSwap.
Looking at users it’s obvious that QuickSwap has captured the attention of the community and those looking to maximize their output from DeFi applications. Up 50% in the last 7-days with over 1.4k.
Matic’s rebrand to Polygon comes at a time of heightened pressure on the Ethereum network, which has been suffering from record fee costs due to massive demand for DeFi dapps. As a result, dapps from all categories currently based on Ethereum are clambering to find layer 2 solutions and this seems to be benefitting companies such as Polygon.