In recent crypto news, a sidechain developer has been seeing its listed token climb in a mixed cryptocurrency rally that, for once, is not pushing Bitcoin higher.
Omkar Godbole at Coindesk reports Polygon’s MATIC token has gone up 5% last week with a reported 10-fold increase in volume, citing liquidity from deals with parties like open source and non-custodial liquidity protocol Aave.
“The Aave-Polygon integration, announced March 31, has already brought over $1 billion in liquidity into Aave protocol, according to a tweet from Polygon co-founder Mihailo Bjelic,” Godbole writes. “Aave was the third-largest DeFi protocol at press time, with $6.33 billion in “total value locked” (TVL), which is the amount of collateral put into the system in exchange for loans or other transactions.”
Polygon operates a layer 2 sidechain that helps with alleviating congestion on the Ethereum network. Experts describe it as an off-chain solution for scaling Ethereum, and point out that these layer 2 solutions are good for bringing decentralized apps (dapps) to market.
They also mention lower gas fees, and general capabilities for traders who want to leave a traditional chain for a layer 2 environment.
Looking at MATIC, we see that it’s doubled over a month and increased 500% over six months.
Ripple’s XRP hasn’t done too badly over the same time frame, either.
The XRP token is spiking as the SEC’s continued legal assault on Ripple seems destined to sink in the choppy waters of regulatory clarification.
Judge Sarah Netburn and others have questioned the SEC’s assertion that XRP is nothing more than a security that carries high liability for its administrators, due to not being officially registered as such.
As for Bitcoin, it sits around $53,000. Not an all-time high this week – not yet – but not too shabby, either, for anyone who bought in below $10,000 or $20,000, and has now doubled, tripled or quadrupled their money.
Is it a time for profit taking, or do you want to put some of your Bitcoin money into places like Polygon and Ripple?