Crypto & Blockchain News

Polygon Daily Users Surpass Ethereum, Solana As DeFi Activity Grows

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Polygon, a Layer 2 blockchain, has been making waves in the crypto space with its incredible growth trend in recent weeks. Thanks to lower fees and faster transactions, daily active users on the Polygon Layer 2 blockchain have soared, surpassing even some of the largest Layer 1 blockchains in the world.

Traditionally, Ethereum has been the dominant blockchain in terms of daily active users, mainly due to its thriving decentralized finance (DeFi) ecosystem. However, the high fees on Ethereum have pushed DeFi enthusiasts towards Layer 2 blockchains like Polygon, looking for more cost-effective alternatives.

As a result of this migration, Polygon has experienced a consistent spike in daily active users, overtaking Ethereum and Solana. According to data from DeFi aggregator site DeFiLlama, Polygon currently has an impressive total of 405,084 daily active users, compared to Ethereum’s 332,000. This means Polygon has gained over 50,000 more daily users than Ethereum and has also outpaced competitors such as Arbitrum and Solana.

Polygon is also making headway in the DeFi protocol arena, trailing Ethereum and Binance Smart Chain (BSC) with a total of 445 protocols. Ethereum currently has 855 protocols, and BSC follows with 629, cementing Polygon’s position as the Layer 2 network with the highest number of DeFi protocols.

The positive impact of Polygon’s growth is evident in the price of its native token, MATIC, which jumped more than 7% in the last 24 hours. This impressive performance has made MATIC one of the top 10 players in the crypto market. If network growth continues to push the price up, MATIC could potentially retest the $0.85 resistance level by the end of the week.

MATIC’s rise has also led to bullish momentum in the short term, with the cryptocurrency surpassing its 50-day moving average. However, it still remains below the 100-day and 200-day moving averages, suggesting that the current rally may be short-lived.

Nonetheless, the spike in the price of MATIC can be maintained for now, as the trading volume experienced a significant increase of 548% on the last day. This increased interest demonstrates increased enthusiasm from both small and large players in the market.

As Polygon continues to attract more users and expand its DeFi ecosystem, it is positioning itself as a formidable player in the blockchain space, with potential for further growth and positive price momentum for MATIC going forward.

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