Ethereum-based Layer 2 scaling solution Polygon (MATIC) became a focal point after reaching a significant milestone on January 4. The project’s co-founder Sandeep Nailwal shared an update in Today In Polygon, noting that the number of daily active wallet addresses on the network has risen to an average of 500,000, matching the level of October 2023.
Polygon’s Significant Milestone
Polygon is the highest market cap Layer 2 protocol and is significantly capitalizing on this potential. Data from corporate data provider Artemis shows that the number of daily active users on Polygon PoS jumped from the lowest level of 247,200 recorded on November 24, 2023, to 519,970 on January 3, marking a doubling in user activity.
According to Artemis’ data, Polygon PoS had not seen the current level of user count since October 22, 2023, when the number of users reached 543,290. Polygon PoS also presented other promising data for a more holistic view of performance.
As of January 2, the total value locked (TVL) in the protocol reached $927.02 million. This TVL level corresponds to the second-highest figure reached since the beginning of October 2022. The emergence of Layer 2 network’s PoS in the early part of last year was a major shift in focus for Polygon as it sought to enter the decentralized finance (DeFi) market dominated by Ethereum (ETH).
Polygon PoS had announced plans to transition to zkEVM Validium Layer 2 to reposition itself in line with the industry’s development. The steady growth of the protocol’s PoS has contributed to the network’s increasing adoption, as seen today. Polygon’s evolution has made it one of the dominant Layer 2s in the competitive field.
Is MATIC’s Price Ready for a Rise?
Polygon’s native asset MATIC is currently on a significant recovery path, with an increase of over 3.3% in the last 24 hours to $0.8841. The altcoin had pulled back to $0.8449 before returning to the current level.
MATIC faced a sharp pullback over the last few days with a market-wide downturn following speculative reports from leading crypto company Matrixport that spot Bitcoin ETFs would not be approved. However, network trends in the Polygon protocol potentially fuel demand for MATIC, thereby creating upward pressure on the altcoin’s price. If the current trend continues, the hype following MATIC’s upgrade to POL could lead to a parabolic rise in the altcoin’s price.
