The exponential growth of the decentralized finance sector increased activity on the Ethereum blockchain, and this has resulted in slow transaction times and incredibly high fees.
In the last month, Ether (ETH) price has also rallied more than 100%, and gas fees are on the rise again as demand for ETH and a resurgence in the DeFi sector accelerates.
Matic Network intends to solve the DeFi and decentralized applications scalability problem by using layer-two technology for off-chain computing.
Multiple sidechains can be used simultaneously, and each is secured by a group of validators via its proof-of-stake system. The results are then pushed to the Ethereum network, creating checkpoints.
The project aims to become blockchain agnostic, which would allow for interoperable assets in the future. Currently, the Matic Network is ERC-20-based and its MATIC token has a $156 million market capitalization.
Backed by Coinbase Ventures and Binance Launchpad, the project raised $5.6 billion during its initial exchange offering in April