Polygon (MATIC) gains momentum as users and DApps flock to its network

Polygon, a Layer 2 scaling solution for Ethereum, has witnessed a surge in user activity and token price in the past 30 days, as the demand for faster and cheaper transactions grows in the crypto space. Polygon's native token, MATIC, has increased by 6.5% in the last month, reaching US$1.12 as of December 31, 2023.

Polygon, formerly known as Matic Network, is a platform that connects multiple blockchains and enables interoperability, scalability, and innovation. Polygon uses a hybrid approach of Plasma, Proof-of-Stake, and sidechains to provide a secure and efficient way to process transactions on Ethereum, without compromising on decentralization.

Polygon has attracted many popular decentralized applications (DApps) and protocols to its network, such as Aave, SushiSwap, Curve, Decentraland, and OpenSea. According to DappRadar, Polygon has over 500 DApps on its network, with a total value locked (TVL) of US$6.8 billion and a daily active user (DAU) count of 173,000 as of December 31, 2023.

One of the main drivers of Polygon's user growth is the booming non-fungible token (NFT) market, which has seen a resurgence in popularity and innovation in the past few months. Polygon offers a low-cost and user-friendly environment for NFT creation, trading, and gaming, which has attracted many artists, collectors, and gamers to its platform.

Some of the notable NFT projects on Polygon are:

Zed Run: A virtual horse racing game where players can breed, race, and trade digital horses that are represented as NFTs. Zed Run has over 40,000 users and has generated over US$40 million in sales.

The Sandbox: A metaverse where users can create, own, and monetize their virtual worlds and assets using NFTs and the SAND token. The Sandbox has over 270,000 users and has sold over US$100 million worth of land parcels.

Gods Unchained: A trading card game where players can collect, trade, and battle with cards that are NFTs. Gods Unchained has over 30,000 users and has sold over US$10 million worth of cards.

Polygon's user growth and NFT activity have also boosted the demand and value of its native token, MATIC, which is used for governance, staking, fees, and rewards on the network. MATIC has outperformed the broader crypto market in the past 30 days, gaining 6.5% while Bitcoin and Ethereum have dropped by 9.8% and 7.2%, respectively.

MATIC's price performance has also been supported by several positive developments and partnerships in the Polygon ecosystem, such as:

Polygon Studios: A new division of Polygon that focuses on growing the NFT and gaming sector on the network. Polygon Studios aims to bridge the gap between Web 2.0 and Web 3.0 gaming and provide support and funding for NFT and gaming projects.

Polygon Hermes: A new zk-rollup solution that enables fast and cheap transactions on Ethereum, using zero-knowledge proofs. Polygon Hermes is the result of Polygon's acquisition of Hermes Network, a Spanish startup that developed the technology.

Polygon x EY: A collaboration between Polygon and Ernst & Young, one of the Big Four accounting firms, to offer enterprise-grade blockchain solutions for businesses and governments. Polygon x EY will leverage Polygon's scalability and EY's expertise to provide secure, compliant, and cost-effective solutions.