Layer 2 solution, Polygon (MATIC) has been seeing increasing volumes from a variety of dApps on its network, some of which have been outstripping the volumes on Ethereum.
One of the main reasons for it has been the high gas fees that were seen on the ethereum network till about a month back. Though the fees have reduced significantly over the last few weeks, it has not stopped the users and developers from moving to Polygon (MATIC) and continue their development and trading over there.
SushiSwap, Aave, and other DeFi projects have already started building on Polygon and in fact, the number of active SushiSwap wallets is higher on Polygon than on the ethereum network. Likewise, Aave has also registered a much greater trading volume on Polygon(MATIC) than on its network on ethereum. These are projects that moved to Polygon at a time when gas fees were high and the users and the developer seem to have stuck around as they continue to enjoy low fees at the new Layer 2 solution.
Polygon has been developed by a team based in India and it was one of the first Layer 2 scaling solutions built on ethereum. Such solutions are needed by users and ethereum as well, at this time, as the scalability of the current version of ethereum continues to remain a big question. Ethereum 2.0 is expected to resolve the problems of scalability and high gas fees but until that is fully rolled out and stable, the Layer 2 solutions will continue to provide the only alternative for users and developers who want to build and scale on the ethereum network.
It remains a big question on how the adoption of these solutions would be, after ethereum 2.0 comes into existence and whether they would enjoy the same patronage as they are doing now. Still, ethereum continues to be the network of choice for major developers and companies that want to build DeFi apps and it remains to be seen whether the newer solutions like Polygon have managed to wean them away from ethereum as yet.
Investors and traders do not seem to mind, though, as the value of the MATIC token has risen phenomenally over the past few months and the buzz around the network continues to grow among the crypto community. It is now up to Polygon to make use of this new market and come up with upgrades and features to show themselves to be a true and reliable alternative to ethereum rather than being a stop-gap solution.