In May, the cryptocurrency market dropped significantly, but MATIC (Polygon) showed growth (+ 118%), contrary to the general trend. it the event speaks not only of the strong position of the coin, but also the ability of individual projects to withstand a market downturn.
Image Source: Cryptocurrency Exchange StormGain
The main problem with Ethereum is a large downloadnetworks and "slow" proof-of-work protocol. As a result of the boom in smart contracts, commissions at their peak exceeded Bitcoin's costs, reaching $ 69.5. MATIC solves this problem by increasing the transaction speed to 65 thousand per second at a fee of 0.001 cents.
MATIC is designed to integrate with Ethereum, unlikefrom his "killers" Polkadot or Solano. Because of this, MATIC has benefited more from the DeFi market rally, where most solutions are built on the Ethereum network.
Image source: bitinfocharts.com
Now the capitalization of MATIC is $ 1 billion, andhe is ranked 16th overall. In May, the number of users who daily use Polygon increased from 7,500 to 28,900. And the Aave site, after integrating with Polygon, recorded an increase in addresses by 156% per month and came out on top among DeFi projects.
Image source: defipulse.com
On May 26, it became known that Mark Cuban -billionaire and owner of the Dallas Mavericks basketball club - invested in MATIC. The amount was not disclosed, but on May 27, the Polygon co-founder announced a "significant investment."
The DeFi market has grown 60 times in a year.Users do not want to pay $ 10 per transaction, so the demand for solutions with low fees will grow. The only thing that threatens Polygon is Ethereum's move to the proof-of-stake protocol. However, Vitalik Buterin called 2022 the nearest time, and the full deployment of the network will take about six years. Until then, the huge difference in fees and speed will drive MATIC's growth.
Analytical group StormGain