- Matic weathers steep fall
- Investors prefer layer two scaling solutions
- Big Companies prefer layer two scaling solutions amid continued stress on Ethereum’s network
The rally by cryptocurrencies continues and the tokens which are making the most are MATIC, the token from Polygon Network. Monday arrived with good news for most cryptocurrencies as investors started paying their attention to layer 2 scaling solutions amid continued stress on Ethereum’s network.
MATIC prices have swelled by 40% in one day
Yahoo News quoting Messari data said that MATIC prices have swelled by 40% in the past 24 hours and hit a 6.5 week high above $0.50. It represented a 25-fold gain on a year-to-date basis. Bitcoin also gained a raise of 6% over the past 24 hours while the number two Ether surged by 10%.
Last week also when most cryptocurrencies were weathering a steep fall MATIC with a present market capitalization of more than $2.5 billion, rose about 5% in price. If the trend continues it will give investors an attractive option to invest rather than investing in riskier options like Bitcoin and other fast-moving digital wealth.
Talking to CoinDesk in a Telegram chat, Alex Svanevik, CEO of blockchain data company Nansen, felt that Polygon’s organic growth is powering its prices higher. Svanevik added that Polygon has seen a 10 times rise in the number of transactions and this constitutes a very healthy rise.
Polygon getting more attention
Yahoo finance.com reports that record activity in Ethereum has led to network congestion and has also jacked up transaction costs this year. This has provoked an increase in demand for diverse “smart-contact” blockchain networks, such as Binance Smart Chain (BSC), or projects like Polygon which gives the benefit of quicker and cheaper transactions using layer 2 sidechains.
Record activity on Ethereum has led to network congestion and high. The dynamic in turn has driven an increase in demand for along with scaling projects like Polygon that provide faster and cheaper. These are tangential networks running alongside the main Ethereum blockchain. Many top names are increasingly showing interest and opting for a layer 2 scaling solution to bypass congestion as well as high fees on Ethereum’s network.