Polygon (MATIC) network focuses on the growth of its layer two networks

The price of Polygon (MATIC/USD) could be performing poorly from the recession across the broader cryptocurrency market, but the Polygon network continues to register significant growth in its pursuit of developing a sustainable layer-two network.

Polygon is a layer-two network based on the Ethereum blockchain. The network provides high speeds and low fees to achieve scalability.

Growth of the Polygon network

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

One of the major developments on the Polygon network is the recently closed $450 million funding round. The funding round was completed on February 7, and it was supported by some of the leading players in the blockchain space, such as Sequoia Capital.

This week, the Polygon network saw a major development after Ankr announced the development of a bridge between the Ethereum and Polygon networks. Through this bridge, users have a chance to earn additional rewards on DeFi platforms.

The Polygon network provides scaling and support to the infrastructure provided by the Ethereum Virtual machine (EVM). The network has gained adoption because despite being based on Ethereum, it allows its users to benefit from low transaction costs and high speeds.

However, the Polygon network has faced increased competition from scalable layer one networks. These networks have been working to be Ethereum killers, and this has been reflected in the launch of DeFi and non-fungible tokens (NFTs) on the platform.

Data from DeFiLlama shows that Polygon is ranking as the eighth-largest blockchain by total value locked. Its TVL stands at $3.62 billion. Between July and December last year, this TVL increased by 340%.

Polygon (MATIC) is on a decline

Despite these developments around the Polygon network, the price of the MATIC token has been on a notable decline. The token has declined by around 50% from its all-time high of $2.92 created in December last year. MATIC was trading at $1.44, with a market cap of $9.92 billion at the time of writing.

In comparison, MATIC’s competitors are ranking among the top ten largest cryptocurrencies by market cap. Terra LUNA’s market cap stands at $36 billion, while Solana and Avalanche’s stands at $26B and $20B, respectively. These coins rank among the top ten largest cryptocurrencies.