I’m Still Here!

Market Meditations | March 11, 2022

Polygon (MATIC) is a layer 2 blockchain offering scaling and infrastructure solutions to Ethereum Virtual Machine (EVM) dApps.

  • Last month, Polygon raised $450 million in a funding round involving big-name investors, including Sequoia Capital.
  • DappRadar shows that on March 10th, the network addresses on Polygon which interacted with decentralized applications (dApps) grew by 5% relative to the previous month.
  • To date, Polygon has reserved over $1 billion to develop DeFi applications requiring sensitive information redaction.
  • Matic’s TVL has, however, drop below $4 billion; a far cry from it’s all-time high at $10.53 billion in June of last year.

One of the most likely culprits behind Polygon’s waning prices is an increase in the population of proof of stake layer 1 networks. When activity on the Ethereum network slows, the effects scale to layer 2 Ethereum solution projects.