A cryptanalyst and YouTuber, Lark Davis has presented a comprehensive review of Polygon in a new video. According to him, Polygon has three main purposes of use. First of all, your MATIC token was designed to be used as a fee and to ensure that transactions become cheaper.
You need to have a small MATIC token in your wallet to pay the fees, and it’s cheaper as $5 of the token can be used for about 100 transactions.
Furthermore, MATIC was designed for staking. Finally, a burn function was introduced to reduce the supply of tokens over time, which is good for long-term price appreciation. So far 633,000 MATICs have been burned.
MATIC in numbers
According to reports, the daily average number of users of polygonal it was 350,000 last week. Also, its average transaction per day was 3.31 million and it has an average transaction cost of $0.017. Polygon has also had a huge impact on the NFT industry since it integrated with the world’s largest NFT marketplace, OpenSea. Their NFT activity has been very high with a cumulative volume of $938 million. There are 15.2 million NFT owners on the network, 32 million NFTs in total volume, as well as 5 million unique wallets that have exchanged NFTs in March alone.
Polygon, the top #ethereum layer 2 is going nuts! Integrations with Aave, Pooltogether, Sushiswap, Open Sea, Curve Finance, Decentraland, and loads of other big #defi applications. TVL on Aave on Polygon nearing 1 billion. $matic undervalued—Lark Davis (@TheCryptoLark) April 25, 2021
Lark Davis believes that MATIC is worthwhile, as its adoption rate has been massive. As of now, there are over 10,000 dApps that use Polygon to scale. It is interesting to note that all the most important applications of the ethereum network can be found at Polygon.
MATIC Challenge
Regardless of his impressive statistical figures, the Total Value Locked (TVL) on the network has shrunk dramatically from $10 billion during its peak in June 2021 to $4.4 billion, which is a roughly 50% reduction. Recently, the Polygon network was down for 11 hours. According to Davis, the network is software after all, so it can present challenges.
It can have bugs and dramatic things can continue as it has dozens of apps. It’s normal with these new crypto chains like Polygon.
Future of Polygon
Davis mentioned that Polygon seems very optimistic as it plans to become carbon neutral after submitting its green manifesto. As the technology rolls out with solid numbers, your decision to be carbon neutral will go a long way in attracting a larger audience. Polygon is also focusing on different scaling solutions based on a document that was recently published. It was about a strategic focus on ZK technology as the next big chapter for Polygon. From this, it is clear that Polygon’s unprecedented growth is worth it, according to Davis.