- Polygon’s Layer 2 blockchain experiences remarkable growth, surpassing Ethereum and Solana in daily active users.
- DeFi enthusiasts flock to Polygon for lower fees and faster transactions, resulting in a surge of interest and network growth.
Polygon, the Layer 2 blockchain, has been making waves in the crypto world as it records one of the most significant growth trends among Layer 1 and Layer 2 blockchains. The platform has witnessed a remarkable surge in daily active users, propelling it beyond the likes of Ethereum and Solana, two dominant players in the crypto realm.
Ethereum’s Dominance Challenged
Traditionally, Ethereum has dominated the market with its extensive decentralized finance (DeFi) activity, attracting crypto users seeking DeFi opportunities. However, Ethereum’s high transaction fees have driven DeFi enthusiasts to explore alternative options such as Layer 2 blockchains, particularly Polygon, for their lower fees and faster transactions.
Polygon’s Remarkable Rise
This shift in preference has led to a consistent rise in Polygon’s daily active users, creating a stark contrast with Ethereum’s figures. According to data from DeFiLlama, the total number of active users on the Polygon blockchain has surpassed an impressive 405,000 in the last 24 hours, outshining Ethereum’s 332,000 users. This means that Polygon currently boasts over 50,000 more daily active users than Ethereum. Moreover, it has also surpassed rival blockchains Arbitrum and Solana, which stand at 172,968 and 122,570 daily active users, respectively.
Leading the Pack in DeFi Protocols and Total Value Locked All Chains
Polygon’s growth isn’t limited to just daily active users. The platform is also making strides in the number of protocols available on its chain. With a total of 445 DeFi protocols, it comes in a close second to Ethereum, which currently hosts 855 protocols, and BSC, with 629 protocols. This impressive array of DeFi protocols solidifies Polygon’s position as the Layer 2 network with the highest number of such protocols.
Source: Defillama
In addition to surging daily active users and a thriving DeFi ecosystem, Polygon’s Total Value Locked (TVL) across all chains has experienced exponential growth. With a remarkable influx of users and an increasing number of DeFi protocols, the TVL for Polygon has seen a substantial rise, cementing its status as a significant player in the crypto space.
Implications for MATIC
As Polygon’s popularity soars, it brings notable implications for its native token, MATIC. Over the last day, MATIC has already demonstrated a staggering 7% price increase, positioning itself as one of the top 10 performers in the crypto market during this period. The surge in trading volume, up by 548%, indicates heightened interest from both small and large players, which may sustain MATIC’s rise for the time being. However, caution is warranted as the cryptocurrency still lags behind its 100-day and 200-day moving averages, hinting at the possibility of a short-lived rally from its current position.
In conclusion, Polygon’s phenomenal growth in daily active users, coupled with its thriving DeFi ecosystem and impressive Total Value Locked across all chains, presents a formidable challenge to Ethereum’s dominance. As the network continues to expand and attract more interest, the native token, MATIC, also reaps the rewards with a surge in price and bullish momentum. Investors and enthusiasts alike eagerly watch to see how this story unfolds, as Polygon cements its position as a serious contender in the crypto space.
