Polygon, the Ethereum sidechain, recently upgraded, kickstarting their migration into a new era of scaling as highlighted by their Polygon 2.0 mission. Even though POL prices are still struggling, on-chain data points to a robust ecosystem that could support prices in the medium to long term.
Over $214 Billion In DEX Volume Processed Via Polygon
Aggregating data from DeFiLlama, an analytic platform, and the Aggegration Layer, a core hub for Polygon, the sidechain said it has deep liquidity and maintains a strong alignment with Ethereum. This alignment instills confidence in the platform’s interoperability, positioning Polygon as a preferred choice for developers launching dapps in a low-fee, scalable environment.
Since the start of the year, Polygon has been growing rapidly. To put in the numbers, the platform has processed over $214 billion in decentralized exchange volume. At the same time, it has enabled the addition of $102 billion worth of assets through centralized exchanges like Binance, Coinbase, and others.
These impressive figures show that the platform is popular despite the availability of layer-2 alternatives, and it can also easily handle large-scale transactions securely.
Besides the huge transaction count processed by Polygon, going by trends, it is highly likely that the Aggregation Layer, better known as the AggLayer, will boost liquidity and general utility.
The AggLayer will be central to Polygon’s mission to scale Ethereum further while connecting all layer-2s technology built using its technology. In this design, the goal will be to ensure that POL has more utility while all layer-2s connecting access instant liquidity.
Polygon Tech Finding Adoption: Why Is POL Down?
With the upgrade from MATIC to POL on September 4, the new token means holders play a heavier role. For example, besides POL being used to reward validators who stake, it will be used to secure other platforms linked via the AggLayer. These added functionalities will help prop up bulls as the sidechain progresses in its goal of scaling.
That Polygon is eager to scale without comprising security could explain the rising adoption levels. Recently, the Italian government issued a €25 million digital bond on Polygon PoS. Meanwhile, Franklin Templeton, Ondo, and Spiko all leverage Polygon technology as they tokenize United States Treasuries, according to RWA.xyz data.
Even as impressive as Polygon has been growing, POL is still struggling. After the highly anticipated migration, the token edged lower, finding support at $0.35. Sows have the upper hand until there is a comprehensive close above the descending channel and $0.60.
Feature image from Shutterstock, chart from TradingView