• Polygon is outpacing Ethereum with respect to total users and cost of transactions.
• The Polygon ecosystem is seeing an intriguing embrace of its core tools like CDK and zkEVM.

Polygon (MATIC) is currently making waves in the crypto market, surpassing Ethereum (ETH) in terms of user activity and gas usage. Activity on the network has surged, attracting users with its lightning-fast transactions and lower fees.

Polygon’s Move to the Top

Polygon has been stealing the show when it comes to daily transactions, surpassing even Ethereum, the blockchain giant it is built upon. According to a prior report by Crypto News Flash, the number of active users is close to 10 million. The growing popularity of the Polygon network is the driving force behind the spike in activity.

This user migration could slow down Ethereum’s growth, but it’s important to remember they aren’t rivals. Rather, Polygon is a Layer-2 solution on Ethereum, more like an extension cord, providing a smoother user experience for the network. In the long run, a thriving Polygon ecosystem could benefit Ethereum by helping it handle more transactions.

Despite the network’s success, MATIC, the native asset of Polygon is yet to reflect that growth. The token even dipped in early June, suggesting a period of selling pressure. On Balance Volume (OBV) suggests more selling than buying pressure. 

However, a positive Chaikin Money Flow (CMF) suggests some money might still be flowing in, even with a lower trading volume. This could hint at larger investors (whales) accumulating MATIC despite the short-term dip. Moreover, Santiment’s data reveals an increase in accumulation by addresses holding smaller amounts of MATIC (between 0-100 coins). This suggests retail investors are viewing the price dip as a buying opportunity.

At press time, MATIC is trading at $0.6449, down marginally by 0.2% in the past day, with the market cap pegged at $6.38 billion.

Nonetheless, trading volume increased by 31% to $399 million, suggesting a growing optimism among Polygon investors.

Polygon Becomes a DeFi Sweetheart

While MATIC struggles for price growth, the Polygon blockchain is shining in the Decentralized Finance (DeFi) sector. Its Proof-of-Stake (PoS) system, zero-knowledge Ethereum Virtual Machine (zkEVM), and Chain Development Kit (CDK) are becoming increasingly popular tools for DeFi developers.

These features are attracting new projects to the Polygon network, making it a platform for innovation in the DeFi space. Echoing earlier coverage by Crypto News Flash, Aave, QuickswapDEX, Balancer, Azure Protocol, and Polymarket are a few of the dApps that have been developed on Polygon.

Meanwhile, Polygon officially announced the launch of the EURC (EURC.e) on its zkEVM in April. Polygon’s zkEVM is expected to create a highly scalable and secure blockchain solution for Circle’s EURC.

As previously reported by Crypto News Flash, the zkEVM lowers transaction costs and increases throughput. This is in addition to ensuring there is an available base-layer security of Ethereum.

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