Polygon (MATIC) continues impressive progress as an alternative to ethereum

Karthik Subramanian

Layer 2 solution, Polygon (MATIC) has been seeing increasing volumes from a variety of dApps on its network, some of which have been outstripping the volumes on Ethereum.

One of the main reasons for it has been the high gas fees that were seen on the ethereum network till about a month back. Though the fees have reduced significantly over the last few weeks, it has not stopped the users and developers from moving to Polygon (MATIC) and continue their development and trading over there.

SushiSwap, Aave, and other DeFi projects have already started building on Polygon and in fact, the number of active SushiSwap wallets is higher on Polygon than on the ethereum network. Likewise, Aave has also registered a much greater trading volume on Polygon(MATIC) than on its network on ethereum. These are projects that moved to Polygon at a time when gas fees were high and the users and the developer seem to have stuck around as they continue to enjoy low fees at the new Layer 2 solution.

Polygon has been developed by a team based in India and it was one of the first Layer 2 scaling solutions built on ethereum. Such solutions are needed by users and ethereum as well, at this time, as the scalability of the current version of ethereum continues to remain a big question. Ethereum 2.0 is expected to resolve the problems of scalability and high gas fees but until that is fully rolled out and stable, the Layer 2 solutions will continue to provide the only alternative for users and developers who want to build and scale on the ethereum network.

It remains a big question on how the adoption of these solutions would be, after ethereum 2.0 comes into existence and whether they would enjoy the same patronage as they are doing now. Still, ethereum continues to be the network of choice for major developers and companies that want to build DeFi apps and it remains to be seen whether the newer solutions like Polygon have managed to wean them away from ethereum as yet.

Investors and traders do not seem to mind, though, as the value of the MATIC token has risen phenomenally over the past few months and the buzz around the network continues to grow among the crypto community. It is now up to Polygon to make use of this new market and come up with upgrades and features to show themselves to be a true and reliable alternative to ethereum rather than being a stop-gap solution.



Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”