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Polygon Is Dominating the L1 Blockchain Space, Here’s Why

Polygon Is Dominating the L1 Blockchain Space, Here’s Why

Polygon (MATIC) is fast becoming one of the most dominant L1 chains in the crypto industry, with new on-chain data revealing massive growth for the network in recent months.

Reports showed that Polygon PoS Chain Unique Addresses jumped by over 12.5 million between May and July, reaching approximately 160 million addresses — its highest unique addresses. Interestingly, Polygon eclipsed the unique addresses added by other L1 blockchains. BNB Chain added about 6 million within the same period, while Ethereum welcomed a little over 2 million addresses.

Source: Polygon Daily
Source: Polygon Daily

Polygon Adoption Is Through the Roof

Away from unique addresses, Polygon also exhibited superiority in adoption over most L1 Altcoins. With over 37,000 decentralized applications (dApps) now running on the blockchain, Polygon has become one of the most preferred chains for developers. Data from Alchemy shows that the existing dApps on Polygon are almost double what they had in March and four times what they had at the start of the year.

To highlight the impressive adoption rate of the MATIC blockchain, total active teams on the chain — used as a direct measure of developer activity on a blockchain — surpassed 11,800 at the end of July, over 47.5% increase from the 8,000 recorded in March. Alchemy further reported that 74% of teams integrated on Polygon do so exclusively, while the remaining 26% are deployed on both Polygon and Ethereum.

Meanwhile, institutional-grade cryptocurrency custodian GK8 recently announced that its native end-to-end solution, which includes DeFi, staking, NFT, and tokenization support, is now fully integrated with Polygon.

MATIC Remains On the Backfoot

With all this impressive news coming out of the Polygon camp, one would believe that the MATIC token would be on an aggressive bullish momentum. However, this has not been the case for the DeFi blockchain cryptocurrency, which currently trades at -69.8% year-to-date (YTD).

MATIC/USD Daily Chart. Source: TradingView
MATIC/USD Daily Chart. Source: TradingView

The cryptocurrency traded in a sideways bias from mid-July to mid-August after peaking around the $1 mark. However, this bias came crashing on August 14, when MATIC embarked on a bearish breakout from a wedge pattern. MATIC has struggled to return above the 100 EMA at $0.85 over the past 72 hours.

The recent bearish breakout in Polygon got exacerbated by a fall in Bitcoin, which dragged the entire market into a double-digit slump within a few days. Analysts claim the recent rebound in the market was only a dead-cat bounce, as many traders resumed after the summer holidays.

Is there any Respite for the Market?

On-chain data provider Santiment tweeted on Sunday that Bitcoin could rally again despite revealing that short positions are piling on exchanges after the cryptocurrency crashed to levels not seen since mid-June.

Source: Santiment
Source: Santiment

The crash came following the release of the July US Fed meeting minutes, which showed the central bank remained hawkish and planned on maintaining an aggressive interest rate hike campaign.

MATIC Statistics Data

MATIC Current Price: $0.7770

MATIC Market Cap: $6.28B

MATIC Circulating Supply: 8.04B

MATIC Total Supply: 10B

MATIC Market Ranking: #15

Trade MATIC now >

This article should not be taken as a piece of financial advice. It is essential to conduct your research before making investment decisions.

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