DeFi Integration and layer-2 upgrades drive price rally
Exponential growth within the decentralized finance sector has significantly increased activity on Ethereum, resulting in slow transaction times and especially high fees. As a result, layer-2 solution Matic has been enjoying record results.
The price of the MATIC token has surged by 92% in the last 7-days and 130% over the last 30. The price rise is in part due to layer-2 advancements and multiple decentralized DeFi applications opting to use the network’s layer-two solution as traders continue to look at DeFi for big returns.
Ethereum game Cometh has announced a bridge to transfer NFTs from Ethereum to the Matic Network. Cometh surged to the number 1 game position last week on DappRadar after a successful launch and will fully launch on Matic today. Furthermore, the developers teased a potential collaboration with Aavegotchi, which will also launch on Monday the 8th of February.
Since August 2020, Matic’s BEPSwap decentralized exchange has been running in beta while on September 10th, 2020, Matic released its proof-of-stake token bridge, allowing faster transfers between the Ethereum and Matic networks. Furthermore, In late September 2020, Matic launched its final staking phase by adding community-run validator nodes. At the time of writing QuickSwap, a decentralized exchange is the most used DeFi application on Matic in regards to users and volume at the time of writing over the last 7-days.
Over the past few weeks, more projects have chosen to launch on Matic, including blockchain games SkyWeaver, Aavegotchi, the collectible game Drakon IOI and the Fire Protocol OS. Furthermore, on January 6th, the MATIC token listed on Huobi Global and offered an $80 premium to new users.
Overall, January 2021 has seen an increase in worldwide interest in the Matic Network in tandem with the token price surge. However, determining the exact primary reasons for the impressive price surge is more difficult amidst the current bull run.
Who Is Matic?
The Matic Network is backed by Coinbase Ventures and Binance Launchpad and raised $5 million during its initial exchange offering in April 2019. Matic aims to solve the DeFi and decentralized application scalability dilemma by using layer-two technology for off-chain computing with the use of multiple sidechains simultaneously. Each secured by a group of validators via its proof-of-stake system and the subsequent results are then pushed to the Ethereum network.
Looking at the top 7 dapps on Matic ranked by volume over the last 7-days as tracked by DappRadar we see a good split of dapps across categories. 2 Defi, 2 Collectibles, 2 Gambling, and one Game. We also see the top 3 dapps far superior volume figures. The top 3 dapps on Matic generated over $3.5 million in volume whilst the other 4 generated just over $20k.