Polygon (POL) Discloses Crucial Performance Data, Showcasing Substantial Growth in Liquidity and Adoption

Ethereum Layer-2 scaling solution Polygon (POL) has disclosed crucial performance data in a post on X. Per the data, Polygon has grown substantially this year

Polygon (POL), an Ethereum Layer-2 scaling solution, has shared crucial performance data in a recent post on X. According to the data, Polygon has seen substantial growth this year in terms of liquidity, Proof-of-Stake (PoS), and the AggLayer.

Highlighting the key on-chain data on Polygon, the post reveals that Polygon’s PoS has processed a total of $214 billion in Decentralized Exchange (DEX) volume since January 2024. To provide some context, Polygon’s PoS serves as a foundation for new and existing blockchain projects to build on Ethereum (ETH) without facing any scalability challenges.

Moreover, Polygon noted that assets worth $102 billion have been added to the PoS through Centralized Exchanges (CEXes). This translates to over 679 million deposits on the platform since the beginning of this year. According to Polygon, other chains that are plugged into the network can benefit from this massive liquidity, with PoS set to plug into the AggLayer.

Polygon’s strong liquidity can be attributed to its association with the Ethereum network, which, thanks to its development team, has seen Polygon firmly establish itself as a promising scalability project. According to data from DefiLlama, Polygon's Total Value Locked has soared to $942.5 million, up from less than $1 million in 2021. This DeFi breakthrough suggests increased user participation and trust in the protocol.

Over the years, Polygon has also seen increased adoption from mainstream firms who are seeking an entry point into the Web3 ecosystem. Notably, PoS was the first chain to handle RIP 7212, and core developers quickly adopted the changes that were introduced.

The benefits of a low-cost execution environment and fast finality provide an effective base for Ethereum usage, which also allows more projects to flourish within the Polygon network. Some of the highlights include over 11 million collectible avatars being minted by Reddit users, Mastercard's Web3 artist accelerators, and Starbucks Odyssey's pioneering loyalty program, all of which have tapped into Polygon.

In other news, Italy’s Cassa Depositi e Prestiti (CDP) has also launched a €25 million digital bond on the Polygon blockchain, which is being supported by Intesa Sanpaolo. This issuance marks a key development in the use of blockchain for financial assets in Europe.

The presence of mainstream companies and their customers on Polygon is also an appealing point for Web3-native applications in Decentralized Finance (DeFi).

The former native token of the Polygon ecosystem, MATIC, has consistently shown a downtrend since the beginning of the year. As of this writing, the MATIC price demonstrated decreases of 5.8%, 10.2%, and 29% in the weekly, monthly, and yearly time frames, respectively. This comes as a major twist, considering how bullish other network stats are.

However, MATIC’s decreasing value comes amid a recent ecosystem upgrade, where MATIC is now officially migrated to POL tokens. This means that every transaction on Polygon PoS now uses POL as the native gas token.

With this in mind, investors and analysts anticipate a price increase for POL as the upgrade expands the token’s utility. Within the last 24 hours, POL's price increased by 2.2% to $0.3837.

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