An example is Polygon, an Ethereum scaling and infrastructure development platform, where the native token known as MATIC is now among the most trending cryptocurrencies of the past couple of days.

With the constant increase in demand for the blockchain platform that is capable of offering the scalability solution, Polygon has offered a multi-pronged solution to the Ethereum network that has been struggling with congestion and high gas fees.

The increase in MATIC price and trading volume in the recent past has been attributed to several factors, some of which include; The increasing number of dApps integrated into the Polygon ecosystem; and the increasing use of layer 2 solutions in the broader crypto space. Polygon’s capability to provide the swift and affordable transactions with the compatibility of Ethereum network has made it a preferred choice for new and existing blockchain projects.

Among the main factors that contributed to Polygon’s relatively recent growth is the start of a number of important collaborations. Eminent DeFi platforms, NFT platforms, and Web3 dApps have declared Polygon as their preferred home to deploy solutions due to the platform’s high scalability and low transaction fees, which positively impacts the users.

This has led to a lot of projects being developed hence boosting the network activity and subsequently the demand for MATIC tokens. Another factor that has contributed to Polygon’s trending status is that there is increased institutional demand for layer 2 solutions. When more and more old-generation financial actors and large-scale investors start moving into the DeFi sphere, they focus on the need for efficient and inexpensive blockchains.

This has resulted in more investment into Polygon and other layer 2 solutions, organically and through investment products based on cryptocurrencies. Polygon’s latest technology developments such as Polygon zkEVM and the works on various scaling solutions have been met with a lot of enthusiasm in the crypto space.

These innovations will help to build the platform’s scalability and efficiency, and place Polygon in the center of the developing Ethereum environment. The Polygon team has also made it its priority to cultivate a healthy developer ecosystem to ensure that the project’s progress has been sustained.

Hackathons, grants, and educational activities have been successful in recruiting developers and unique and valuable projects to the platform and its applications, thus increasing the platform’s scope and potential. However, like any other budding blockchain project, Polygon has its problems and competitors.

The layer 2 space is becoming crowded with other solution such as Optimism, Arbitrum, and zkSync vying for market share. Also, the constant expansion of Ethereum 2. 0 and there is always a possibility of the base layer being changed in the future which may affect the overall value proposition of layer 2 solutions.

However, the community of Polygon is still positive about the future of the platform and its development. The constant work on new products, including Polygon Avail and Polygon Nightfall, has maintained Matic in the trending list among Crypto users.

With the development of the blockchain industry, the scalability and cost efficiency of Polygon solutions for Ethereum applications will be the key to its position as a leading layer 2 solution and to the further inclusion of MATIC in the list of trending cryptocurrencies.