Polygon (MATIC) price soared 233% in one month, what brought it out of the bear market?

Polygon TVL and market capitalization It is gradually recovering in response to currency price trends. This rise is outside the circle with its own benefits. Benefits of technology architecture, expansion plans, and strategic layout settled in Polygon, including Reddit’s recent announcement to launch an NFT avatar market on Polygon and the introduction of Web3 on smartphones in collaboration with technology company Nothing. Attracted many partners and agreements to do. Push to be one of the few dark horses on the bear market.

What made Polygon out of the bear market? Are the numbers showing signs of recovery?

Polygon: Connect an Ethereum compatible blockchain network

Polygons are protocols and frameworks for building and connecting Ethereum-compatible blockchain networks. Polygons are one of the sidechain solutions to make Ethereum more efficient and are aimed at solving some of the many problems with Ethereum, such as:

• Low throughput
• Bad UX (gas, PoW finality delay)
• No sovereignty (shared throughput / risk of clogging, non-customizable technology stack, reliance on governance)

Polygon cross-chains assets on the mainnet to Polygon for processing by establishing a sidechain. It alleviates problems such as high gas charges and low throughput. That’s why most project parties use it as their preferred blockchain.

Benefits of 5 Polygon Solutions

Let’s take a look at some of Polygon’s most fascinating features.

• Scalability: Polygon has a special Wasm execution environment, a customized blockchain, and a scalable consensus algorithm. As a result, shorter transaction speeds and lower gas charges benefit both developers and participants.

• Ethereum compatibility: Industry-leading and accepted by established technology stacks, tools, languages, standards, and enterprises, Polygon can interoperate with Ethereum and other blockchain networks to exchange any message. ..

• Module design: Polygon’s modularity allows for customization, upgradeability, faster time to market, and community collaboration. Through Polygon, developers can establish a preset blockchain network with quality specific to their needs. Community participation has increased the collection of modules for developing custom networks that allow for greater customizability, scalability, upgradeability, and quick access to the market.

• Interoperability: Polygons use a technology called plasma to process transactions off-chain before they are confirmed on Ethereum. Polygon aims to be a complete framework for developing interoperable blockchains. Built-in support for arbitrary message passing (tokens, contract calls, etc.) allows you to connect to external systems.

• User experience: Polygon does not require protocol knowledge, token deposits, or approval. Its modular design makes it easy to create customized solutions and add new features. It also has low transaction costs (about 1 / 10,000 per transaction than Ethereum) and fast transaction speeds (up to 7,000 tx / s).

These benefits are sufficient to facilitate the development of DeFi, NFT, Web3, and GameFi projects on Polygon’s chains and make Polygon stand out on many blockchains.

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According to Footprint Analytics, Polygon’s TVL and MATIC are showing signs of rebound, with TVL rising 75% from $ 1.2 billion on June 20th to $ 2.1 billion on July 20th. MATIC coin prices have also risen 233% and breakouts in the bear market are rare. Among many blockchains.

Polygon ecosystem expands from DeFi to NFT, etc.

Last year, the Polygon network protocol was primarily from Ethereum’s various excellent DeFi projects, including huge projects such as Curve and Aave. But since the beginning of the year, the rise of GameFi, NFTs, and Web3 has clearly reflected the cheap and fast benefits of Polygon in these sectors.Especially in GameFi In the sector, Polygon’s number of projects jumped to third place on WAX.

In addition, polygons make up 25% of all active GameFi users, gradually dividing the number of Ethereum and BSC chains. The reason for this phenomenon, on the one hand, may be that frequent interactions between the game and the chain lead to a surge in transactions, and low rates are more attractive to users. On the other hand, the gaming experience is greatly influenced by the speed of transactions. Therefore, polygons have edges.

Not only that, Reddit recently announced the launch of an NFT-based Avatar Marketplace at Polygon. This move awakened whales and increased their possession of MATIC. MATIC prices are showing a small rise to help Polygon get out of the bear market.

Overview

The advent of polygons is really to strengthen support for Ethereum networks and is destined to occupy a solid position in some sectors due to the benefits of low transaction fees and high throughput.

With the timely launch of GameFi active users and Reddit’s new NFT Avatar Marketplace, Polygon is showing signs of a rebound from the bear market.

The Footprint Analytics community has published this article July 2022 by Vincy.

Data Source: Footprint Analysis- Polygon dashboard

The Footprint Community is a place for data and crypto enthusiasts around the world to understand and gain insights into Web3, Metaverse, DeFi, GameFi, or other areas of the new world of blockchain. Here you can find active and diverse voices that support each other and move the community forward.