With 4 billion overall transactions, Polygon, the Ethereum scaling solution meant to fix the scalability problems of the network, has passed an amazing mark. Given the network started only four years ago in June 2020, this success is especially remarkable. Comparatively, Bitcoin took an astounding 15 years to reach one billion transactions, underscoring Polygon’s explosive adoption speed.
User Surge Fuels Polygon’s Growth Engine
This explosive climb is more than simply a vanity statistic. The daily active users on the network create a striking image of a healthy ecology. Polygon has shown a run of more than sixty days with an average of over one million daily active users since March 19.
NEW:
Polygon PoS has reached 4B total transactions processed. pic.twitter.com/ZifZDTqs2Z
— Today In Polygon (@TodayInPolygon) May 17, 2024
The popularity of distributed apps (dApps) developed on Polygon most certainly drives this explosion of user activity. Popular names drawing users and increasing transaction volume are Matr1x, a mobile-first play-to-earning game, and Galxe, a developing digital identity network.
Nevertheless, MATIC, Polygon’s native coin, hasn’t reflected the excitement even with this remarkable network expansion. MATIC has stayed mainly range-bound between $0.5 and $1 over the past year, much below the wider crypto market. Some people find great difficulty between network activity and token price.
Unpacking The MATIC Price Mystery
Analysers provide a few theories to help explain this pricing puzzle. Demand for MATIC, required to interface with Polygon’s dApps, should grow in turn as more people swarm to them. MATIC may thus have a long-term price appreciation. Others, however, draw attention to the enormous quantity of tokens in circulation—more than 10 billion—as a possible check on price rises.
Still another consideration is the competitiveness. Although Polygon is the most often used Ethereum scaling tool, other blockchains like Solana show even more transaction volume (more than 290 billion in a comparable period).
The Future Of Polygon: A Balancing Act
Experts are cautiously hopeful about Polygon’s future even if the present price stagnation is causing concern. Unquestionably, the fast expansion and user acceptance of the network represent advantages. The Polygon team is also actively developing scaling solutions and drawing fresh dApps into its ecosystem.
MATIC could at last break out from its declining trend and start a long trip higher if it can effectively negotiate the competitive terrain and convert network activity into actual value for users.
Featured image from Pond5, chart from TradingView