Polygon has recorded one of the most significant growth trends among Layer 1 and Layer 2 blockchains over the last couple of weeks. As a result, the daily active users on the Layer 2 blockchain has risen rapidly to surpass daily users on some of the largest Layer 1 blockchain in the world.
Polygon Daily Active Users Cross 405,000
Usually, Ethereum dominates most blockchains in terms of daily active users. This is because of the enormous decentralized finance (DeFi) activity that is being carried out on the blockchain, making it the top choice for crypto users who want to leverage the DeFi opportunities. However, Ethereum’s high fees have seen DeFi enthusiast flock to Layer 2 blockchains such as Polygon for lower fees and faster transactions.
As a result of this exodus, Polygon has seen a consistent rise in its daily active users and has now surpassed the likes of Ethereum and Solana. According to data from the DeFi aggregator website DeFiLlama, the total active users on the Polygon blockchain in the last 24 hours is sitting at 405,084.
In contrast, the total number of daily active users for the same time period for Ethereum is 332,000. This means that Polygon is currently seeing over 50,000 more daily active users compared to Ethereum. It is also ahead of rival Arbitrum which is sitting at 172,968, and Solana with 122,570 daily active users.
Polygon daily active addresses cross 405,000 | Source: DeFiLlama
The number of protocols on the chain is also on the rise, coming up just behind Ethereum and BSC for the highest number of DeFi protocols. Ethereum currently has 855 protocols and BSC is sitting at 629 protocols. As for Polygon, it boasts a total of 445 protocols, making it the Layer 2 network with the highest amount of DeFi protocols.
MATIC Poised To Follow Network Growth
The price of MATIC has responded positively to the network growth on the Polygon blockchain as it trades in the green. This budding correlation between the two could signal the start of another rally for MATIC going forward.
MATIC price recovers to $0.78 | Source: MATICUSD on Tradingview.com
Over the last day, the price of MATIC is already over 7%, emerging as one of the top 10 performers in the crypto market during this time. If the price continues to rise with network growth, then the digital asset could retest the $0.85 resistance before the weekend is over.
MATIC’s rise has also put it above the 50-day moving average, indicating bullish momentum in the short term. However, the cryptocurrency is still well below its 100-day and 200-day moving averages, which would suggest a short-lived rally from here.
Nevertheless, MATIC’s rise can be sustained for now as bulls are quickly taking over. Its trading volume is up 548% in the last day, which suggests heightened interest from both small and large players alike.
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