Polygon (MATIC) was the top gainer among the list of cryptocurrencies arranged by market capitalization by CoinMarketCap in a 24-hour period leading up to press time.
What Happened: MATIC traded 34.49% higher at $0.756 at press time and has risen 120.04% on a seven-day trailing basis.
Since the beginning of the year, MATIC has skyrocketed 4,188.14% — beating the 259.7% and 90.27% year-to-date returns of Bitcoin (BTC) and Ethereum (ETH).
BTC traded 1.95% at $54,861.99 at press time, while ETH traded 4.80% higher at $2,637.28.
Polygon was previously called the Matic Network and is a platform for Ethereum scaling and infrastructure development. It describes itself as a Layer 2 scaling solution and is focused on reducing the complexity involved in scaling blockchains.
See also: How to Buy Cryptocurrency
Why It Matters: Polygon has witnessed a “10x rise in the number of transactions since the start of the year,” according to Alex Svanevik, CEO of Nansen, a blockchain data firm, CoinDesk reported.
Ethereum’s network congestion and high transaction costs this year have also led to the rise in demand for Polygon recently with multiple decentralized finance or DeFi projects announcing integration with it.
Lark Davis, a market analyst tweeted earlier on the development.
On Tuesday, DeFi yield protocol mStable announced it was embracing the layer-two scaling solutions provided by Polygon.
The integration between AAVE (AAVE) and Polygon, announced at the end of last month, has already ushered in $1 billion in liquidity into the AAVE protocol, according to Polygon co-founder Mihailo Bjelic.
AAVE’s total value locked is touching nearly $8.2 billion as of press time, a rise of 15.79% over 24-hours, according to DeFi Pulse. AAVE traded 13.96% higher at $453.27 at press time.
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