Bitwise Replaces ATOM with MATIC in Crypto Index; Okcoin Integrates Polygon for Cheaper & Faster DeFi Entry
The Ethereum scaling solution is enjoying elevated levels of total value locked (TVL) despite the recent deep rut in the market, the same as its price.
Digital Assets manager Bitwise has added Polygon (MATIC) to its Large Cap Crypto Index.
This new addition has been part of Bitwise’s May month-end index reconstitution process, where Polygon has replaced ATOM. ATOM -5.35% Cosmos / USD ATOMUSD $ 36.58
-$1.96-5.35% Volume 1.1 b Change -$1.96 Open $36.58 Circulating 222.07 m Market Cap 8.12 b 23 h South Korea’s Largest Crypto Exchange Operator Raises $85 Million at an $8.65 Billion Valuation 5 d Risk-on Assets Recover and Start Rallying After Fed Chair Pushes Back Decision on Tapering to November 1 w Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market
Polygon is a decentralized scaling solution that provides faster and cheaper transactions on Ethereum by using scaling technologies like side-chains.
With adoption skyrocketing and with that Ethereum’s first layer becoming slow and expensive, development on layer 2 solutions has become a priority in the ecosystem, especially amidst the rapidly growing DeFi sector, while Ethereum continues on its transition to Eth 2.0. ETH -5.09% Ethereum / USD ETHUSD $ 2,919.33
-$148.59-5.09% Volume 17.24 b Change -$148.59 Open $2,919.33 Circulating 117.71 m Market Cap 343.63 b 39 min China Ban: TradingView & Data Sites Inaccessible, Alibaba Stops Miners & Crypto Sales, “Complete Shutdown” for SparkPool Users 1 h Bitcoin’s Monthly Inflow Crosses $100 Million, Solana and Polkadot See “Outsized Inflows” 23 h South Korea’s Largest Crypto Exchange Operator Raises $85 Million at an $8.65 Billion Valuation
While Arbitrum and Optimism are currently popular Ethereum Layer 2 solutions, Optimism has postponed the public launch of its mainnet to at least July, and Arbitrum’s mainnet launched last month is only live for developers, so far.
Polygon, which recently got the backing from billionaire investor Mark Cuban, is gathering all the attention. This helped the total value locked (TVL) in Polygon climb past $10 billion from a mere $1 billion less than two months back.
The Ethereum sidechain’s TVL remains near its all-time high despite the recent deep rut in cryptocurrency prices, thanks to yield farming incentives. In recent weeks, Ethereum’s dominance has also been trending up, “potentially indicating a “flight to quality”’ while Bitcoin’s declining.
Interestingly, while the majority of the crypto market is still severely down from their ATHs, MATIC prices recovered fast and are currently around $1.67, down 38% from the May 18 peak of $2.62.
This week, cryptocurrency exchange Okcoin also integrated Polygon, describing it as “the fastest-growing scaling solution for Ethereum.” By supporting Polygon, Okcoin now offers a cheaper and faster way to USD and EUR into DeFi.
In its official announcement, Okcoin noted that despite the ongoing development with Layer 2, there are still hurdles to access them as one has to go through layer 1 first and then access layer 2 that involves time and extra fees.
This integration with Polygon removes the need to go through layer 1 to access the sidechain, removing some of these fees.