Why Ethereum Scaling Solution Polygon (MATIC) Is Soaring Again In A Bearish Market

Polygon (MATIC), a multichain scalability platform for Ethereum, has skyrocketed nearly 145% in a seven-day trailing period even as cryptocurrencies with larger market cap chart a reverse trend.

What Happened: MATIC’s rise takes place amid a wider surging Decentralized Finance, or DeFi, segment. The coin touched an all-time high of $2.14 around Monday midnight.

Polygon’s token traded 22.92% higher at $2.04 over a 24-hour period leading to press time.

The cryptocurrency has risen 145.39% over a seven-day trailing period. In the same period, Bitcoin (BTC) has fallen 18.29% and Ethereum (ETH) has declined 10.49%.

BTC traded 3.79% higher at $45,283.89 at press time over a 24-hour trailing period. ETH was up 5.26% at $3,498.94.

Against BTC, MATC traded 19.35% higher, while against ETH, it traded 17.77% higher over a 24-hour period leading up to press time.

See also: How to Buy Ethereum (ETH)

Why It Matters: DappRadar data, first noted on Cointelegraph, indicates that Polygon has added 75,000 active user wallets in the span of just one week.

The increased usage has attracted $1 billion in volumes. Meanwhile, the number of decentralized applications, or DApps, tracked on Polygon has grown to 93 from 61.

Open source DeFi apps built on Polygon are also finding their way on other chains such as Binance Smart Chain and Ethereum (ETH) after rebranding and minor modifications, as per DappRadar.

Polygon has benefitted from faster and cheaper transactions it offers, now in demand due to high transaction, or gas fees, on Ethereum’s network.

Congestion and higher fee on ETH have been made worse by the popularity of Dogecoin (DOGE) clones such as SHIBA INU (SHIB) and Dogelon Mars (ELON) which are ERC 20 tokens, this has also helped MATIC.

The DeFi boost has also buoyed AAVE (AAVE) and the mobile DeFi platform Celo, both of them in the green for the week.

Market News and Data brought to you by Benzinga APIs