In recent days, the cryptocurrency Polygon (MATIC) has garnered significant attention in the market, attracting both investors and institutions. However, the recent substantial distribution of 217 million MATIC tokens led to a 2% drop in its market value, despite the overall bullish trend in the crypto market.
217 million MATIC tokens distribution
On November 16, 2023, in a move to foster growth, the Polygon Ecosystem Growth initiative successfully completed a major token distribution. Over the last 12 hours, 217 million MATIC tokens, valued at approximately $198 million, were distributed among 70 wallets.
Notably, 82.3 million MATIC, equivalent to $74.9 million, entered centralized exchanges through 32 wallets. This deliberate distribution strategy aims to engage various stakeholders in the crypto ecosystem, with a significant portion contributing to the liquidity pool of centralized exchanges.
As of now, MATIC is trading near $0.93 with a 2.05% price change in the last 24 hours. The chart clearly indicates growing interest from investors and institutions. Over the last 28 days, MATIC has provided an impressive return of over 80%. These numbers prompt a common question among investors: Can MATIC outperform the Solana Network? The crypto community eagerly awaits further developments in this dynamic landscape.
Also Read: Google Cloud joins Polygon Network as a validator
Polygon POS overtakes Arbitrum One in transactions
The Co-founder Sandeep Nailwal’s latest disclosures on November 16, 2023, shed light on the significant shift within the decentralized finance (DeFi) space, particularly on the Polygon Proof-of-Stake (POS) network.
Nailwal shared some data indicating a significant shift in the dynamics of the decentralized finance (DeFi) space, particularly on the Polygon Proof-of-Stake (POS) network. Sandeep stated,
“Something extraordinary is happening on Polygon POS. Today marks the first day in a long time where Polygon POS Dex volumes on DEXScreener closely rival those of Arbitrum One (clearly the top DeFi L2 chain – big shoutout and love). I believe numerous performance optimizations on 0xPolygon POS through recent hard forks have led to a better user experience for many.”
The DEX transactions on Polygon POS consistently surpass those on Arbitrum One by 1.5 to 2 times, indicating a significant preference among retail users for Polygon POS as their chosen chain for accessing DeFi. This trend has persisted despite the absence of incentives for the past two years or more.
It suggests that Polygon POS has become the preferred platform for retail users engaging with decentralized finance. This substantial increase in transaction volume and user activity underscores the platform’s popularity and adoption within the DeFi community.
Polygon, designed to address Ethereum’s scalability issues, offers faster transaction speeds (7,000 TPS compared to Ethereum’s 14 TPS) and lower costs. It operates as a Layer-2 blockchain, aiding Ethereum developers in building decentralized applications more efficiently.
