Written by Hazel J. Greene, Senior Analyst

Polygon has experienced a remarkable surge in growth, outpacing both Layer 1 and Layer 2 blockchains. This tremendous growth has propelled the daily active user count on Polygon’s Layer 2 blockchain to surpass that of some of the largest Layer 1 blockchains in the world. The increasing popularity of Polygon can be attributed to its ability to offer lower fees and faster transactions, attracting crypto users seeking decentralized finance (DeFi) opportunities.

Traditionally, Ethereum has dominated blockchains in terms of daily active user count, buoyed by robust DeFi activity. However, the high fees associated with Ethereum have encouraged DeFi enthusiasts to migrate to Layer 2 blockchains like Polygon. As a result, Polygon has witnessed a consistent surge in daily active users, surpassing Ethereum, Solana, and even Arbitrum. Data from DeFi aggregator website DeFiLlama reveals that Polygon’s daily active users currently stand at an impressive 405,084, compared to Ethereum’s 332,000, making Polygon the platform with over 50,000 more daily active users than Ethereum. Additionally, Polygon boasts an extensive network of 445 protocols, positioning it just behind Ethereum and BSC in terms of the number of DeFi protocols available.

The growth of Polygon’s network has had a positive impact on the price of its native cryptocurrency, MATIC. With a budding correlation between Polygon’s network growth and MATIC’s price performance, there are indications of a potential rally on the horizon for MATIC. Over the past day, the price of MATIC has already surged over 7%, emerging as one of the top 10 performers in the crypto market. If this upward trajectory continues in tandem with network growth, MATIC could even retest the $0.85 resistance level before the weekend concludes.

The current rise in MATIC’s price has pushed it above the 50-day moving average, signaling a bullish momentum in the short term. However, it is important to note that MATIC still remains below its 100-day and 200-day moving averages, indicating that this rally may be short-lived. Nonetheless, the current surge in MATIC’s price can be sustained for the time being, as bulls are taking control. The trading volume of MATIC has increased by a substantial 548% in the last day, indicating a heightened interest from both small and large players in the market.

With its skyrocketing daily active user count, surpassing prominent Layer 1 blockchains, and boasting an extensive network of DeFi protocols, Polygon is solidifying its position in the crypto space. The growth of its network has also positively affected the price of MATIC, resulting in a potential rally. As we witness the impressive rise of Polygon, it is clear that the platform has established itself as a significant player in the blockchain ecosystem, offering a compelling alternative to Ethereum and other Layer 1 blockchains.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.