The exponential growth of the decentralized financial sector increased activity on the Ethereum blockchain, resulting in slow transaction times and incredibly high fees.
In the past month, the price of Ether (ETH) has also increased more than 100%, and gas charges are rising again as demand for ETH increases and a revival in the DeFi sector increases.
Matic Network intends to solve the scalability problem of DeFi and decentralized applications using Layer-Two technology for off-chain computing.
Multiple side chains can be used at the same time, and each is secured by a group of validators via the proof-of-stake system. The results are then broadcast onto the Ethereum network, which creates checkpoints.
The project aims to become blockchain agnostic, which would enable interoperable assets in the future. Currently, the Matic Network is based on ERC-20 and its MATIC token has a market capitalization of $ 156 million.
The project, backed by Coinbase Ventures and Binance Launchpad, raised $ 5 million in its first exchange offer in April 2019. A number of notable projects have already integrated Matic Network’s infrastructure, including Decentraland and Maker.
Since January 1, MATIC is up 92%, but the token is still 23% below its all-time high from December 2019 at $ 0.44.
Matic Network initiated deposits and withdrawals in its main network on June 20, 2020 and started offering staking options a few days later. Token holders could then delegate their shares to validators and share revenues.
On September 10, 2020, Matic released its proof-of-stake token bridge, which enables faster transfers between the Ethereum and Matic networks.
Matic’s decentralized BEPSwap exchange has been running in beta since August 2020, and liquidity has dropped about 25% from its high of $ 40 million.
In September 2020, Matic Network kicked off its final stakeout phase by adding community-operated Validator nodes and increasing the slots to 100. The team intends to gradually shut down all of the Matic Foundation nodes to allow the community to choose from public validators.
The DeFi and Altcoin season seems to be driving MATIC higher
In the last few weeks, a handful of projects have decided to launch on Matic Network, including the game SkyWeaver, Aavegotchi Crypto Collectibles, the collecting game Drakon IOI and Fire Protocol OS.
Additionally, on January 6th, the MATIC token was listed on Huobi Global, offering a $ 80 reward to new users on board with full confirmation from Know Your Customer.
Data from The Tie shows that the recent price hike has been accompanied by a significant surge in social media activity. However, it is difficult to determine whether the surge in Twitter users is the main driver behind MATIC’s price action.
The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.