Ethereum Layer-2 scaling solution Polygon (POL) has disclosed crucial performance data in a post on X. Per the data, Polygon has grown substantially this year regarding liquidity, its Proof-of-Stake (PoS), and the AggLayer. Polygon is known for its unique architecture, which supports high transaction throughput with reduced latency.

Processed Transactions and Key On-chain Data on Polygon

As highlighted in the post, Polygon’s PoS has processed transactions totaling $214 billion of Decentralized Exchange (DEX) volume since January 2024. For context, Polygon’s PoS provides a foundation for new and current blockchain projects to build on Ethereum (ETH) without scalability difficulties.

Additionally, Polygon noted that assets worth $102 billion have been added to the PoS through Centralized Exchanges (CEXes). This translates to over 679 million deposits on the platform since the start of this year. Polygon believes other chains plugged into the network can benefit from this massive liquidity, with PoS set to plug into the AggLayer.

Polygon’s strong liquidity results from its association with the Ethereum network. Due to its development team, Polygon has firmly established itself as a promising scalability project. Per data from DefiLlama, Polygon’s Total Value Locked has soared to $942.5 million, up from less than $1 million in 2021.

This DeFi breakthrough suggests increased user participation and trust in the protocol.

Polygon Adoption by Mainstream Firms Entering Web3

Over the years, Polygon has seen increased adoption from traditional firms seeking an entry point into the Web3 ecosystem. PoS was the first chain to handle RIP 7212, and core developers quickly adopted the changes introduced.

The benefits of a low-cost execution environment and fast finality provide an effective base for Ethereum usage. It also allows more projects to flourish within the Polygon network, home to over 11 million collectible avatars minted by Reddit users. In addition, Mastercard’s Web3 artist accelerators and Starbucks Odyssey’s pioneering loyalty program also tapped into Polygon.

Italy’s Cassa Depositi e Prestiti (CDP) has launched a €25 million digital bond on the Polygon blockchain. Supported by Intesa Sanpaolo, the issuance marks a key development in using blockchain for financial assets in Europe.

The presence of mainstream companies and their customers on Polygon is also an appealing point for Web3-native applications in Decentralized Finance (DeFi).

The MATIC and POL Outlook

MATIC, the former native token of the Polygon ecosystem, has consistently shown a downtrend since the start of the year. As of this writing, MATIC price demonstrated decreases of 5.8%, 10.2%, and 29% in the weekly, monthly, and yearly time frames. This is a major twist, considering how bullish other network stats are.

MATIC’s decreasing value, however, comes amid a recent ecosystem upgrade. Notably, MATIC has been officially migrated to POL tokens. This means every transaction on Polygon PoS now uses POL as the native gas token.

POL introduces a unique approach to sustainable growth with a 2% annual emissions model. The key focus of this model is to supply 1 billion POL tokens over ten years to fund the community grants program.

With this in mind, investors and analysts anticipate a price increase for POL as the upgrade expands the token’s utility. Within the last 24 hours, POL’s price increased by 2.2% to $0.3837.

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