Crypto markets are in the red today, but not for Polygon, whose MATIC coin is surging. It has now flipped Solana for a crypto top ten position.

Polygon is now a top ten crypto asset in terms of market capitalization, which is $9.7 billion. The Ethereum layer-2 scaling network has gone from strength to strength this year.

According to Token Terminal, daily active users on Polygon have surpassed those on Ethereum. BNB Chain is the top blockchain for daily active users, with almost 800,000, according to the chart.

However, Polygon is now second with 340,000, just eclipsing Ethereum’s 320,000. Polygonscan confirms the uptick in daily active chain addresses reporting closer to 400,000. Furthermore, the metric has increased by 21% over the past two weeks.

Etherscan confirms that there were 341,000 active Ethereum addresses on Jan. 26.

WOW @0xPolygon just overtook Ethereum in daily active users @sandeepnailwal imagine being bearish on $MATIC 🔥 pic.twitter.com/MgqXDqgK8e — Zack 🔺 Chief Alpha Officer (@btc_zack) January 26, 2023

Polygon On-chain Activity Up

Total value locked on Polygon DeFI has also increased since the beginning of the year. TVL on the network is currently $1.28 billion, according to DeFiLlama. This represents a gain of almost 20% since Jan. 1.

AAVE is the leading platform on Polygon, with a market share of 25%. Furthermore, Polygon is the fourth largest DeFi ecosystem behind Ethereum, BNB Chain, and TRON. It has 80% more collateral locked than Solana.

TVL on @0xPolygon has risen from $994M to $1.2B over the last 30 days. pic.twitter.com/mPqBvuAsiT — Narb (@NarbTrading) January 26, 2023

The network currently processes around 3 million transactions per day, according to Polygonscan. Comparatively, Ethereum’s is about a third of that at 1 million. The Bitcoin network processes around 300,000 transactions per day.

On Jan. 26, Polygon partnered with Arkham intelligence, a blockchain analytics company. On Jan. 20, it partnered with BitGo to provide staking capabilities for MATIC holders.

On Jan. 17, Polygon announced that it had successfully completed the Delhi hard fork, which is designed to reduce gas fees and address chain reorganization.

Price Outlook

The bullish on-chain activity has been reflected in MATIC’s price momentum. As a result, the coin climbed 8.7% on the day to reach $1.09 at the time of press. Remarkably, MATIC is moving in the opposite direction to the rest of the crypto market, which has declined slightly.

MATIC/USD price one month – BeInCrypto

MATIC is made 14% over the past week, breaking the psychological $1 barrier two weeks ago for the first time since November. Since the beginning of the year, it has made an impressive 45% gain.

However, MATIC prices are still down 63% from their December 2021 all-time high of $2.92.