Polygon’s Expanding Ecosystem Supports MATIC’s Rise to New All-Time Record
Layer two (L2) solutions for the Ethereum network have become a popular topic of discussion and speculation about their associated tokens has supported the massive rally seen in many protocols this year. The parabolic growth of the decentralized finance (DeFi) and non-fungible tokens (NFT) sectors has also led to an increase in the cost of simple transfers, which has prompted developers and investors to migrate to platforms that support L2. .
Polygon (MATIC), a proof-of-stake blockchain protocol that aggregates scalable solutions on Ethereum to support a multi-ecosystem in the chain.
Data from Cointelegraph Markets Pro and TradingView shows MATIC bottomed at $ 1.01 on September 21, and over the past several months the price has trended steadily, pushing the altcoin above from the $ 2 mark on December 1.
The Polygon ecosystem is growing and proof of this is the increase in protocol launches, cross-chain migrations, the launch of an Exchange Traded Product (ETP) focused on Polygon and a steady increase in the activity of users.
A major driver of MATIC’s price and on-chain activity has been the addition of new protocols to Polygon network project launches and inter-chain migrations.
More recently, the decentralized exchange IDEX announced that it will launch v3 of its exchange on the Polygon network, making it the first hybrid liquidity DEX on Polygon.
Tomorrow. Approximately 12:00 PM PST.
IDEX v3, the first Hybrid Liquidity DEX will be launched on @ 0xPolygon.
✅ Combined liquidity AMM + Order book
Trading Rewards + Cash Extraction
No failed transaction
Actual limit and stop-loss orders
✅ Inexpensive transaction fees pic.twitter.com/1nmOEzEGLW
– IDEX (@idexio) November 30, 2021
The Polygon Network has seen project launches from NFT projects such as the OpenBiSea NFT Marketplace and gaming / DeFi platforms such as Rainmaker Games, Harvest Finance, and Jarvis Network.
Currently, the Uniswap community is in the process of voting on whether to add Polygon support for Uniswap v3 and after a Phase 1 majority vote on November 25, the process moved to Phase 2.
Institutional support on the rise
Another reason for the bullish price action for Polygon has been increased interest from institutional investors. Several Exchange Traded Products (ETPs) for Polygon have been listed in recent months, including Osprey Polygon Trust in September and 21Shares Polygon ETP in November.
Polygon is also included on the list of assets explored by Grayscale Investments as a potential Trust candidate.
The network also benefited from a $ 20 million investment fund launched by Wintermute, a digital asset market maker focused on helping start the development of decentralized applications on Polygon.
Currently, the Polygon Network is receiving increased attention as it prepares to host a ZK Summit on December 9, where developers will discuss “the current state and future of zk-STARK and evidence applications. to zero knowledge “.
Related: IDEX launches decentralized hybrid liquidity exchange on Polygon
Increase in active users and wallets
A third reason for the bullish price action seen in MATIC has been the steady increase in the number of users on the network, as evidenced by the increase in the number of wallet addresses holding a balance.
As the graph above shows, the number of Polygon wallets holding a balance has steadily increased throughout 2021 and currently stands at a record high of 282,760.
Evidence of the increase in activity can also be found in the data on the total revenues generated by the charges on the network, which have steadily increased in the second half of 2021.
As new protocols continue to be listed on the Polygon network, these statistics are likely to increase if new users continue to use the platform to escape the high fees seen on the Ethereum network.
Cointelegraph Markets Pro’s VORTECS ™ data began to detect a bullish outlook for MATIC on October 15, ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, recent price movements and activity Twitter.
As shown in the graph above, the VORTECS ™ score for MATIC climbed into the green zone on October 15 and peaked at 94 about 48 hours before the price began to increase 57% in the six weeks. following.
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