The exponential growth of the decentralized finance sector increased activity on the Ethereum blockchain, and this has resulted in slow transaction times and incredibly high fees.
In the last month, Ether (ETH) price has also rallied more than 100%, and gas fees are on the rise again as demand for ETH and a resurgence in the DeFi sector accelerates.
Matic Network intends to solve the DeFi and decentralized applications scalability problem by using layer-two technology for off-chain computing.
Multiple sidechains can be used simultaneously, and each is secured by a group of validators via its proof-of-stake system. The results are then pushed to the Ethereum network, creating checkpoints.
The project aims to become blockchain agnostic, which would allow for interoperable assets in the future. Currently, the Matic Network is ERC-20-based and its MATIC token has a $156 million market capitalization.
Backed by Coinbase Ventures and Binance Launchpad, the project raised $5 million during its initial exchange offering in April 2019. A number of notable projects have already integrated Matic Network’s infrastructure, including Decentraland and Maker.
Since Jan. 1, MATIC has rallied 92%, but the token is still 23% below its Dec. 2019 all-time-high at $0.44.
MATIC/USDT 4-hour chart. Source: TradingView
Matic Network initiated deposits and withdrawals on its mainnet on June 20, 2020, and a few days later, it began offering staking capabilities. Tokenholders were then able to delegate their staking to validators and share revenue.
On Sep. 10, 2020, Matic released its proof-of-stake token bridge, allowing faster transfers between the Ethereum and Matic networks….