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With the capacity to provide such a highly-sought solution, it’s no wonder that Polygon has significantly grown in the recent past.
The Ethereum network may have acted on their gas fees to endear themselves to more users. However, the drop in gas fees hasn’t stopped more DeFi app developers and the general users from shifting their allegiance to Polygon, a Layer-2 solution.
Two main things have contributed to the increased demand for Polygon. As per market analysts and DeFi developers, low transaction fees and quick or instant transactions are the two major reasons why there’s an increased Polygon adoption by DeFi projects. Some of the notable DeFi projects that have adopted Polygon include SushiSwap and Aave.
Polygon Growth amid Rising DeFi Popularity
Polygon is among the first projects that sought to provide a sustainable scaling Ethereum Layer-2 solution. With the capacity to provide such a highly-sought solution, it’s no wonder Polygon has significantly grown in the recent past.
As per current data, dated June 13, SushiSwap’s – an automatic market maker- active Polygon wallets that are Ethereum-based numbers 15,000. According to DappRadar, a crypto statistics site, this number of active wallets has recently grown from 4,194. The above single statistic indicates that there are moreSushiSwap users on Polygon than in Ethereum.
On June 10, DappRadar reported that in the month of May alone, Aave’s daily volume transactions averaged $6.75 billion on Polygon compared to how Aave and Aave 2 performed on Ethereum, $2.48 and $2.28 respectively. In June Polygon and Aave decided to work together to beat the high gas fees on the Ethereum network.
In a past interview with Coindesk, Quick swap Co-founder said that the use of layer 2 solutions is much more economical for small users and ordinary traders since transaction charges on DeFi are much higher. He further said that the decision to move to Polygon is ingenious.
The residential token at Polygon, Matic, has experienced momentous growth in 2021. According to reliable sources, the 15th ranked token by market capitalization has remained bullish and its price has increased by almost 9000% since last year. Via email to the Coindesk team, Messari noted that L2s are the only solutions for users currently, plus they’re growth catalysts. Messari further noted that high gas charges, particularly on Ethereum, have been a major turn-off for most users.
At the time of writing, MATIC is trading at $1.68, which means that it has gained 12.88% in the last 24 hours.
The popularity of Polygon was perfectly timed, just when Ethereum’s gas charges and computational efforts for trading declined. However, pundits and analysts still think that Ethereum 2.0, an Ethereum upgrade meant to improve efficiency, scalability, and usability, has a promising future. Until the highly anticipated Ethereum 2.0 is fully rolled out, Layer-2 Solutions will continue to provide the much-desired scalability on Ethereum