Token MATIC has exploded too In 2021, Polygon’s MATIC token has increased like none before, appreciated with its price growing more than 1000%. That was a huge rally, and that one was mostly driven by Ethereum surging to an all-time high. Simultaneously, increasing congestion and rising gas costs on Ethereum’s mainnet added to this momentum. Investors and developers are trying to chase scalable solutions right now. Consequently, Layer 2 tokens such as MATIC have become popular contenders, proving their worth by tapping the value of expanded Layer 1 blockchains.
That significant increase in MATIC’s price highlighted the growing recognition of Layer 2 solutions as a crucial technology for enhancing both blockchain scalability and interoperability. Prior to the boom, MATIC had been stuck in a sideways trading pattern since its launch in 2020. Ethereum’s increasing demand underscored the necessity for layer-2 solutions such as Polygon, which seeks to ease congestion and lower gas fees on-chain.
Ethereum’s growing pains, marked by congested networks and expensive gas prices, opened the door for Layer 2 solutions. Polygon’s MATIC is a second layer on Ethereum providing a scalable poly-solution to break these walls down. The rally in MATIC's price highlights how Layer 2 tokens can capitalize on the momentum of Layer 1 blockchains like Ethereum.
MATIC’s power to capitalize on Ethereum’s momentum led to impressive price increases for the token. This dramatic increase underscored the critical need for Layer 2 solutions. They’re an essential element of creating a more useful and accessible major blockchains. Polygon's MATIC, as a Layer 2 solution, addresses Ethereum's congestion issues directly.
