QuickSwap (QUICK) gains 420% as Polygon’s (MATIC) L2 network attracts new liquidity
As the Ethereum (ETH) network progresses along the slow and steady path toward Eth2 and the full transition to proof of stake, layer-2 solutions have arisen as the best solution to the current challenges associated with high gas fees and network congestion.
One L2 solution that has emerged as a top choice for DeFi projects and traders is Polygon (MATIC), which over the past week, has seen its price climb toward new highs due to a surge in activity at its QuickSwap decentralized exchange.
Activity on the exchange was relatively flat throughout the month of April until new partnerships on Polygon reflected investors increasing bullish sentiment.
Demand for Polygon-based tokens has been on the rise thanks to a growing list of big-name projects that have bridged to the L2 solution, including the March 31 announcement from DeFi lending platform AAVE. After AAVE announced that it would launch on the Polygon network, the amount of AAVE locked in the platform surpassed $1 billion.
Multiple nonfungible token (NFT) projects including OpenSea and Decentraland have also migrated to Polygon and are available on the QuickSwap DEX, further helping to boost activity on the platform.
Liquidity and volume on QuickSwap reached new record highs on April 27 as the 24-hour volume on the DEX surpassed $190 million and th total liquidity now above $287 million.
QuickSwap liquidity and 24-hour volume. Source: QuickSwap
As DeFi activity begins to rise again and a growing number of analysts begin to predict that a new altcoin season is in the works, the Polygon ecosystem and its QuickSwap DEX could pull in more liquidity, especially if Ethereum users choose to use the MATIC bridge to shift into a layer-2-based, low fee environment.
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