As the Ethereum (ETH) network progresses down the slow and steady path to Eth2 and the full transition to proof of stake, Layer 2 solutions have emerged as the best solution to today’s challenges associated with high gas costs and network congestion .
One L2 solution that has emerged as a top choice for DeFi projects and traders is Polygon (MATIC), which has seen its price soar to new highs over the past week due to an increase in activity on its decentralized QuickSwap scholarship.
Data from Cointelegraph Markets and TradingView shows that after hitting a low of $ 0.34 on April 25, MATIC’s price rose 161% over the next three days to hit a new high of $ 0.897 on April 28.
QuickSwap missiles higher
While the rise of Polygon has been thoroughly covered by Cointelegraph, the token’s main DEX QuickSwap (QUICK) has so far been overshadowed by the more active exchanges on the Ethereum mainnet such as Uniswap and SushiSwap.
The sudden increase in the trading volume for MATIC over the past week resulted in a significant increase in the demand for QUICK token. This led to a 420% increase in QUICK price from $ 189 on April 25 to a new record high of $ 977 on April 27 as the trade volume of the exchange token reached $ 18.9 million in a 24-hour period.
Stock market activity was relatively flat during the month of April, until new partnerships on Polygon reflected growing bullish investor sentiment.
Demand for polygon-based tokens has soared thanks to a growing list of big name projects bridged to the L2 solution, including the March 31 announcement of DeFi lending platform AAVE. After AAVE announced it would launch on the Polygon network, the amount of AAVE on the platform was locked exceeded $ 1 billion.
Liquidity and volume on QuickSwap hit new all-time highs on April 27, as 24-hour volume on the DEX exceeded $ 190 million and total liquidity was now above $ 287 million.
As DeFi activity starts to pick up again and a growing number of analysts begin to predict that a new altcoin season is in the works, the Polygon ecosystem and its QuickSwap DEX could attract more liquidity, especially if Ethereum users choose to use the MATIC bridge to shift to a low cost layer 2 based environment.
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