Polygon Achieves Significant Network Adoption Milestone

Polygon (MATIC), an Ethereum-based layer-2 scaling solution, has recently garnered significant attention due to a noteworthy milestone achieved by the network. As reported by Today In Polygon and confirmed by co-founder Sandeep Nailwal, the Daily Active Addresses on the network have surged to match their October peak, averaging an impressive 500,000 users per day.

Enter the Era of Polygon

With its position as the most capitalized layer-2 protocol by market capitalization, Polygon is indeed living up to its potential. Data from institutional crypto insights provider Artemis, as of January 3, reveals a substantial increase in daily active users on Polygon PoS, reaching 519,970 from a low of 247,200 recorded on November 24, 2023.

Artemis data further indicates that Polygon PoS has not revisited this level of user count since at least October 22, 2023, when it stood at 543,290. Beyond user metrics, Polygon PoS showcases promising performance data, including a Total Value Locked (TVL) of $927.02 million as of January 2. This TVL represents the second-largest figure recorded since early October 2022.

NEW: Polygon PoS records highest amount of daily active addresses since October.

Now averaging 500K per day. pic.twitter.com/Z93SRGGyS8

— Today In Polygon (@TodayInPolygon) January 4, 2024

The emergence of L2’s PoS early last year marked a significant shift for Polygon, redirecting its focus towards integrating into the decentralized finance (DeFi) space, traditionally dominated by Ethereum (ETH).

Polygon PoS, aligning itself with the industry’s evolutionary path, has unveiled plans for a transition to zkEVM Validium L2. The consistent expansion of the PoS protocol has played a pivotal role in its burgeoning adoption, solidifying Polygon’s position as a dominant player in the fiercely competitive L2 landscape.

Is MATIC Poised for a Rally?

The native token of Polygon, MATIC, is currently on a robust recovery trajectory, witnessing a notable surge of over 3.3% in the past 24 hours, reaching $0.8841. Although the token experienced a dip to $0.8548, it swiftly rebounded to its present level.

Polygon encountered a significant retracement in the past 24 hours, primarily influenced by the broader market downturn triggered by a false report indicating the possible rejection of a spot Bitcoin ETF, as disseminated by Matrixport.

Related: What is Polygon (MATIC)? How Does It Work?

Despite these market fluctuations, the ongoing trends within the Polygon protocol suggest a potential surge in demand for MATIC, exerting upward pressure on the token’s price. If the current trajectory persists, coupled with the anticipation surrounding the upcoming MATIC to POL upgrade, a parabolic price surge for the token may be imminent.