• Polygon has enjoyed a spike in net inflows with 40 percent rise which has pushed its number to just over $480 million.
• Among the top 20 projects by market cap, it’s clear that Polygon’s bet on Etherem was ahead of its time and well placed.

The on-chain activity of the Polygon network continues to rise. The Polygon network and native token (MATIC) has enjoyed massive success by aligning with Ethereum. With Ethereum suffering from high gas fees and scaling issues, Polygon has emerged as a scalable solution on Ethereum at a fraction of the price. As DeFi and NFT projects rise, many have been shifting from Ethereum to Polygon seeing its revenue surge. Roughly $480 million has been bridged into Polygon over the last few days marking an increase of over 40 percent.

Related: Whitehat hacker detects and discloses critical vulnerability on Polygon, receives $2M bounty

One of the most significant Polygon bridges is a commodities trading firm based in Malaysia with a net asset value of $28 billion. The firm has migrated its equity-tied EGX security tokens to the Polygon network from Ethereum.

Luc Falempin, CEO at Tokeny Solutions noted;

Issuers of tokens don’t need to worry anymore about being blocked on a blockchain forever. Without losing any history, we now have the tools and processes for smooth migrations from one network to another.

While many projects such as Solana, Cardano and EOS chose to take on Ethereum. Polygon aligned itself with Ethereum. This has allowed it to enjoy the security base layer and adoption of Etheruem. Its approach as highlighted by analysts and one of the co-founders, Mihalo Bjelic, has made it a good example for all crypto founders.

The network has marked an average of 4.4 million in daily transaction revenue this week, a roughly 20 percent increase from the previous. However, the total number of active users of the bridge has dropped to 18,666, this has been a nearly 50 percent drop. The drop has been attributed to the rise in transaction fees on the network. On the positive, the increase has helped reduce the spam and bot transactions on the network by nearly 50 percent.

Read More: Polygon plans to increase gas fee by 30x to curb spam transactions, MATIC resilient with 6% rise

MATIC price movement

MATIC has struggled to retest its ATH achieved 6 months ago when it touched $2.68. The 19th ranked digital asset has since lost nearly 30 percent of its value. At the time of press, the token is exchanging for 1.90 after a less than 2 percent decline in the last 24 hours.

With coins below it such as Internet Computer (ICP), VeChain (VET) and Crypto.Com (CRO) outperforming MATIC and rising fast, the token is at risk of dropping below the top 20 coins.