Surging usage of Polygon Network’s Ethereum layer 2 scaling solution allowed that platform’s token (MATIC) to largely escape the fate of other cryptocurrencies in May brought down by crash in the price of bitcoin.
MATIC, currently ranked 18th as per market capitalization by Messari, rallied 120% in May even as bitcoin fell by 35%. Ether, polkadot, cardano, XRP, and decentralized finance (DeFi)-blue chips suffered bigger losses, pushing the total market capitalization of the crypto universe down by 24%.
MATIC was able to withstand the the worst effects of the downdraft thanks to Polygon’s soaring usage and constant growth in the congestion and high costs that plague the DeFi-dominating Ethereum blockchain, as analytics firm IntoTheBlock mentioned in its research note published on June 2.
“Throughout 2021, Ethereum fees skyrocketed up to 845% compared to the year before; currently, a transaction on the network costs around $4.819,” IntoTheBlock said. “On the other hand, transacting on the Polygon network only Source…