Jaipur (CoinChapter.com) — Polygon is on a roll. The Ethereum layer 2 scaling solution has registered explosive adoption amongst decentralized projects (DeFi) – especially AAVE and SushiSwap. Consequentially, Polygon’s native crypto token MATIC has soared in value by 53% in the last four days.
While Ethereum started the DeFi revolution, its amplification solution Polygon seems to set new benchmarks in Defi usage.
With ultra-low transaction fees and super-fast transaction times, the Ethereum layer 2 solution is now on every DeFi developer’s mind. And not just developers, Polygon is killing it with DeFi users as well. The reason – small transactions that were nightmarishly expensive on Ethereum are now cheaper thanks to Polygon.
Going by numbers, Polygon processed 9224 transactions per day for DeFi lending protocol AAVE in May. Compared to this, the primary Ethereum chain processed merely 1560 transactions for both V1 and V2 versions of AAVE. The same goes for SushiSwap, one of the largest decentralized exchanges (DEX) in DeFi.
While Ethereum processed just 6066 Sushi transactions per day in May, with 13,362 transactions per day, Polygon noticed a 121% uptick in SushiSwap activity.
Even for the ongoing month of June, Polygon has the edge over Ethereum.
MATIC rallies 53%
The skyrocketing demand for Polygon has reflected on the prices of its native token as well. Over the last four days, MATIC has been on a tear. Apart from rising Polygon usage, the resurgence in bullish sentiment in the overall cryptocurrency market has contributed to the token’s upside rally.
On the daily MATIC/USDT chart, 4 successive green candles since June 12 have led to prices surging from lows around $1.1 to highs at $1.7 today. The token pair has flipped the crucial $1.55 resistance into support. It is now placed well above the 20-day exponential moving average (EMA) line.
However, for confirmation of a full-blown-bullish sentiment, MATIC would need to print another green candle above the 20-day EMA. Technical setup shows that the said scenario could be very much possible. Buyers have taken over the mantle of the MATIC market. RSI is on an uptrend, and the 20-day MACD indicator is also about to post a bullish crossover.
Commenting on the token’s rally, crypto influencer Lark Davis went as far as to predict a $5 price for MATIC soon.
Is the current momentum enough to catapult MATIC beyond its all-time high price of $2.5? That remains to be seen.