- Trading volume and liquidity on QuickSwap, the DEX powered by Polygon Network’s Layer 2 scalability, is growing rapidly.
- Big projects like Aave, Pooltogether, and Sushiswap and large NFT communities are utilizing the Polygon network.
- More Ethereum-based projects could potentially shift to Polygon so that they enjoy its fast and low-fee environment.
Layer 1 solutions like Cosmos (ATOM) had recently cultivated pretty well, thanks to their faster transaction and lower fees compared to the Ethereum network. Now, layer 2 solutions, that aim to increase transaction speeds and scaling without sacrificing network security, are attracting vast attention.
One such layer 2 solution that has seen steady growth is Polygon (Matic). Polygon, which has recently rebranded from Matic, is a Layer 2 scaling solution that uses sidechains for off-chain computation to increase the Ethereum network scalability while ensuring asset security.
The project supports Ethereum scalability solutions like Optimistic Rollups, ZkRollups, and StarkWare’s Validium. Previously, Matic Network was just a simple scaling solution. However, Polygon is intended to be an entire platform designed for launching interoperable blockchains.
Developers can use Polygon to launch preset blockchain networks that satisfy their needs. They can easily customize their projects with an expanding range of modules, allowing developers to create powerful blockchains with tailored functionality.
Growing Volume On QuickSwap
QuickSwap, a decentralized exchange that uses the Ethereum blockchain and Polygon Layer 2 (L2) scaling solution, has seen rapid gains starting late February and continuing all the way to the current time. Over the past weeks, there has been a notable increase in trading volume on the DEX which confirms the increasing Polygon adoption.
Just yesterday, TVL on Aave on Polygon reached $1 billion. There has been a constant growing list of projects integrating with Polygon, which can partly account for the increased trading volume. Some of the latest projects to shift to Polygon are IoTeX (IOTX), Everipedia (IQ), Gelato Network (GELATO), and many others.
Popular Projects Integrated With Polygon
Following the Matic Network rebranding to Polygon, the protocol witnessed a significant increase in project adoption. The project has hosted notable DeFi integrations, as well as integrations with large NFT communities.
Some of the more popular DeFi integrations with Polygon include the decentralized exchange SushiSwap (SUSHI), the popular DeFi lending platform AAVE, and the automated decentralized exchange Curve Finance (CRV). Large NFT marketplaces to integrate with this protocol include OpenSea, Decentraland (MANA), and Aavegotchi (GHST).
Looking at the future, it’s likely that a growing number of Ethereum-based projects that look for a faster, low-fee environment shift to Polygon, causing a surge in its price. At the time of writing, Polygon (MATIC) was trading at $0.51 with a 44% increase over the past 24 hours according to data by Coinmarketcap.