According to DeFiLlama, a well-known crypto analytics site, the blockchain of Polygon reached an impressive total of 405,084 active crypto users in the past 24 hours, surpassing Ethereum, Arbitrum.
Meanwhile, during the same time period, Ethereum recorded 332,000 active users, Arbitrum 172,968 and Solana 122,570.
These figures clearly demonstrate the remarkable success and growing popularity of Polygon compared to other competing blockchains. Let’s see all the details below.
Summary
Polygon establishes itself as the leading crypto by surpassing Ethereum, Arbitrum and Solana
As anticipated, over the past two weeks, Polygon has shown one of the most significant growth trends among Layer 1 and Layer 2 blockchains.
Indeed, thanks to lower fees and faster transactions, the Layer 2 blockchain has surpassed some of the largest Layer 1 blockchains in the world in terms of daily active users.
Usually, Ethereum dominates the blockchain landscape in terms of the number of daily active users due to its intensive decentralized finance (DeFi) activity.Â
However, due to Ethereum’s high fees, more and more DeFi enthusiasts are turning to layer 2 blockchains such as Polygon to take advantage of cheaper fees and faster transactions.
Thanks to this exodus to layer 2 blockchains, Polygon has seen a steady increase in daily active users and now stands above blockchains such as Ethereum and Solana.
According to DeFiLlama, the total number of active users on Polygon in the past 24 hours is 405,084, surpassing Ethereum’s 332,000 users, Arbitrum’s 172,968 and Solana’s 122,570.
In addition, the number of protocols on the network is steadily increasing, with Polygon closely following Ethereum and Binance Smart Chain (BSC) for the most DeFi protocols. Currently, Polygon has 445 protocols, proving itself as a leading Layer 2 network in the world of decentralized finance.
MATIC shows positive growth on Polygon with signs of potential rally
Logically, the price of MATIC has responded favorably to the network’s growth on Polygon, with an upward trend. This connection may indicate the beginning of another rally for MATIC in the near future.
Indeed, recently MATIC has already experienced a 7% increase, placing it among the top ten performers in the cryptocurrency market. If network growth continues to support the price, the digital asset could test $0.85 resistance before the end of the week.
Moreover, according to the data, MATIC’s rise has taken it above its 50-day moving average, highlighting short-term bullish momentum. However, the cryptocurrency remains below the 100-day and 200-day moving averages, suggesting that the rally may be short-lived from this point forward.
Nevertheless, MATIC’s rise seems sustained at the moment, as bullish traders are gaining ground. Trading volume has risen a remarkable 548% in the past 24 hours, showing growing interest from both small and large investors.
Polygon 2.0: new governance strategy and more layer 2s in the network
Polygon Labs recently launched a global expansion project, aiming to integrate every blockchain and application on the Polygon network, with the goal of democratizing the upgrade process and engaging the broader community.
On 19 July, the development team unveiled a new strategy to overhaul the governance system in preparation for Polygon 2.0.Â
The main goal is to implement multiple Level 2s within the network.
The strategy includes three key elements. Initially, it expands the Polygon improvement proposal (PIP) system to involve all blockchains and applications on the network, thus ensuring more inclusive and participatory governance.
The second element concerns “System Smart Contract Governance,” simplifying the application of updates for changes to the smart contract protocol or software. A community-elected board will oversee such changes.
Finally, the project includes the creation of a “Community Treasury,” which is critical for promoting the growth of the Polygon ecosystem and allocating resources for various initiatives.
Initially, an independent board will manage the treasury, but the future goal is to adopt a community-driven governance model.
With these new initiatives, Polygon is preparing to create more inclusive governance focused on participation and continuous innovation.
