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As the bitcoin market experienced turbulence, Polygon Network’s use increased. The project has had a meteoric ascent in recent months that has been quite organic. As the number of Ethereum transactions decreased owing to the network’s capacity, traders discovered an alternative in Polygon.
According to Joel John’s Our Network newsletter, Polygon’s daily transaction count reached an all-time high of 7.4 million. Binance Smart Chain-based Polygon Network has a smaller ecosystem of decentralised finance [DeFi] apps that had previously been battle-tested on Ethereum.
The preceding graph depicted the increase in Transaction count seen on the Binance Smart Chain in May. The volume of transactions on BSC increased from less than a million per day to 11 million per day. While Polygon continued to rise, the number of Ethereum transactions per day remained below 2.5 million.
While high network costs on Ethereum due by the use of DeFi apps drove people away from the ecosystem, Polygon provided similar DApps to Ethereum but with lower rates. This was appealing to Defi users looking for a comparable experience. QuickSwap and Aave have proven to be incredibly important to Polygon’s expansion.
QuickSwap, Polygon’s take on Uniswap, was more distinct than any other DApp.
QuickSwap has 107k unique users and is associated with the emergence of other DeFi initiatives. However, it constantly allows over 10,000 swaps, demonstrating that customers were taking advantage of decreased transaction rates. The average value of a swap has climbed throughout time from $186 to $30,000 at its height, albeit the swap value has recently plummeted below $5,000 due to the recent market collapse.
3.Interest and Adoption
Polygon’s MATIC token maintained its value over $1, reflecting the good feeling in the community. MATIC was trading at $1.44 at the time of publication, with a market value of $8.08 billion. Google trends show that interest in Matic has grown during the last year. Mark Cuban recently voiced his support for the initiative, and he also invested in it.
MATIC’s market capitalisation was $200 million in February 2021. In four months, the increase in the asset’s fundamentals was mirrored in the price. As a result, there is an increasing number of Matic traders and HODLers.