January 5, 2024

Polygon Hits Major Network Adoption Milestone, Is MATIC Set to Soar?

Coin Gape

Ethereum-based layer-2 scaling solution, Polygon (MATIC) is currently in the limelight following the impressive network milestone reached today. According to an update shared by Today In Polygon as echoed by its co-founder Sandeep Nailwal, the network’s Daily Active Addresses soared back to their October high averaging 500,000 users per day.

The Age of Polygon

Polygon is the most capitalized layer-2 protocol in terms of market capitalization and it is notably living up to this potential. Data from institutional crypto insights provider Artemis revealed that as of January 3, the actual count of daily active users on Polygon PoS came in at 519,970, up from the low of 247,200 recorded as of November 24, 2023.

According to the Artemis data, Polygon PoS has not retested its current user count level since at least October 22, 2023, when the user count came in at 543,290. Polygon PoS also brandished some other promising data to give it a more holistic performance overview.

The protocol recorded a Total Value Locked (TVL) of $927.02 million as of January 2. This TVL level accounts for the second-largest figure recorded since at least early October 2022. The L2’s PoS emergence early last year served as a major shift in focus for Polygon as it sought to plug itself into the Decentralized Finance (DeFi) space dominated by Ethereum (ETH).

Polygon PoS, in its bid to reposition itself in line with the industry’s evolution, unveiled plans to change to zkEVM Validium L2. The steady growth of the protocol’s PoS has also contributed to its growing adoption as seen today. Polygon’s evolution has further made it one of the dominant L2s in the competitive niche.

Is MATIC Set to Soar?

Polygon’s native token MATIC is on a major recovery path at the moment, soaring by more than 3.3% in the past 24 hours to $0.8841. The token has dropped as low as $0.8449 before rebounding to the current level.

Polygon faced a steep retracement over the past 24 hours with the major market drawdown recorded on the false report of the likelihood of rejection of spot Bitcoin ETF as shared by Matrixport.

However, the network trends within the Polygon protocol are potentially fueling increased demands in MATIC, hence, placing an upward pressure on the price of the token. Should the current trends continue, with the hype that might trail the forthcoming upgrade of MATIC to POL, a parabolic surge in the price of the token might be just around the corner.

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