- Polygon has continued to record an impressive uptick in usage metrics like active addresses and transaction count.
- Despite these positive ecosystem milestones in Q2, MATIC has continued to drop in ranking.
The Polygon (MATIC) blockchain saw outstanding growth in various parameters in the second quarter (Q2) of 2024. A key milestone recorded in Q2 is active daily addresses reaching 1.2 million, representing about a 47.6% increase from the previous quarter.
Polygon Shines Above Other Blockchains in Daily Active Addresses
According to reports from Messari, a data analytic platform, Polygon dominated other top blockchains in terms of daily active addresses recorded in Q2 2024. Polygon’s average daily active addresses climbed to 1.2 million, while average daily returning addresses rose 50.5% from the previous quarter to 1 million. On average, daily new addresses were 167,800, reflecting a 31.7% rise in QoQ.
Meanwhile, transactions recorded on Polygon were just below all-time highs, with an average of 4.1 million daily transactions, reflecting a 3.9% increase in QoQ. Compared with other blockchains, Arbitrum and Base had average daily active addresses of 545,000 and 528,000, respectively.
The surge in Polygon’s active addresses and transactions in Q2 can be attributed to growth in its technical development. For example, the introduction of the AggLayer in January as a core component in its roadmap has helped to unify liquidity, and states across connected chains.
As highlighted in our previous article, Polygon’s aggregation layer (AggLayer) aims to prevent blockchain challenges that pose scaling limitations to users on top of the existing bad UX caused by fragmented liquidity and state.
Essentially, the AggLayer allows developers to focus on project design without bootstrapping liquidity or users. This is a result of the system’s low-latency cross-chain coordination and safe interoperation of different chains.
Some blockchain projects have tapped into the AggLayer to improve their performance. As noted in our previous report, the decentralized payment network Wirex Pay collaborated with AggLayer to lower its operating expenses and for faster transactions.
The Polygon CDK Advantage On Growth
Another key technical development that helped increase users’ adoption of the Polygon network in Q2 is the Polygon Chain Development Kit (CDK). Although the framework was introduced in Q3 2023, notable teams announced CDK Chains in Q2 2024. Some of them include Moonveil, OKX, Ronin, and Fox Corporation, as we discussed earlier.
Furthermore, Polygon Miden alpha testnet v3 was also launched in Q2 2024. Miden aims for high-throughput applications leveraging ZK-proofs. The ZK Layer-2 solution emphasizes the sovereignty and client-side proving as core features for scalability.
The crypto market experienced a downturn in Q2 2024, following an explosive six months. As a result, MATIC’s market cap declined to $5.5 billion, a 44.3% decrease in QoQ.
MATIC ended the second quarter as the 20th largest cryptocurrency, dropping three spots from the 17th rank at the end of Q1 2024. As of this writing, MATIC has dropped further, ranking as the 22nd largest cryptocurrency. The price of the token experienced a 1.03% increase in the past day to trade at $0.5219.
