While the Ethereum network continues to develop on the slow, steady path towards Ethereum 2.0 and the complete transition to proof-of-stake, Layer-Two solutions have proven to be the best solution for the current challenges, those with high gas charges and network congestion are connected.
One layer-two solution that has turned out to be the number one choice for decentralized finance projects and traders is Polygon, whose price for its MATIC token rose to new highs over the past week due to a surge in activity on its decentralized QuickSwap exchange (DEX).
Data from Cointelegraph Markets and TradingView show that after a low of $ 0.34 on April 25, MATIC’s price rose 161% over the next three days to hit a new all-time high of $ 0.897 on April 28.
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While the rise of Polygon has been thoroughly covered by Cointelegraph, the project’s main DEX, QuickSwap, has so far been overshadowed by the more active exchanges on the Ethereum mainnet such as Uniswap and SushiSwap.
The sudden increase in trading volume for MATIC last week has led to a significant increase in demand for QUICK. This resulted in a 420% increase in QUICK price from USD 189 on April 25 to a new all-time high of USD 977 on April 27, as the trading volume of the exchange token reached USD 18.9 million within 24 hours.
Activity on the stock market was relatively flat in April until new partnerships on Polygon reflected rising investor sentiment.
The demand for polygon-based tokens has increased thanks to a growing list of well-known projects that have bridged the gap to the Layer Two solution, including an announcement made by DeFi lending platform Aave on March 31st. After Aave announced it would start on the Polygon Network, the amount of AAVE locked on the platform topped $ 1 billion.
Several NFT (Nonfungible Token) projects, including OpenSea and Decentraland, have also been migrated to Polygon and are available in QuickSwap DEX, further increasing activity on the platform.
QuickSwap’s liquidity and volume hit record highs on April 27 as the DEX’s 24-hour volume exceeded $ 190 million and total liquidity is now above $ 287 million.
With DeFi activity picking up again and a growing number of analysts predicting a new Altcoin season is in the works, the Polygon ecosystem and its QuickSwap DEX could bring in more liquidity, especially if Ethereum users use the MATIC Bridge switch to a two-tier, low-cost environment.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk and you should conduct your own research when making a decision.