Sandeep Nailwal, co-founder of the popular Ethereum layer-2 scaling solution, Polygon, has recently opined that the influence of large institutional investors on the high-performance blockchain, Solana, was responsible for its meteoric rise to fame.
Speaking in a recent interview with Benzinga, Nailwal noted that although both projects were founded in the same year, Solana became more popular because of the backing it received from several institutional investors.
“We realize how much a difference institutional money makes in terms of the project’s visibility. And I think that is one thing like Solana has been able to do, like, amazing institutional marketing, although their technology might not be proven… But since they have a lot of institutional backing, they get much more mind space than Polygon. And that’s why we realized okay, this is something that we need to do. And that’s what we are doing right now.”
VCs Flock to Polygon
Nailwal revealed that Polygon’s impressive performance in the past few years has not only attracted developers and individual investors, but also top venture capital firms.
He added that although Polygon had started without any backing from VCs, they are currently vying to get on board with the project.
” We never had any VCs backing us which makes us a pure community-built protocol. Now, VCs are first flocking to Polygon and want to invest money. Previously, Polygon never raised any venture capitalist money… Nobody believed that a project from India, especially at the protocol level, would become this big,” he said.
Polygon’s Impressive Performance
The India-based blockchain scalability platform, originally known as the Matic Network, was founded in October 2017, and pitches itself as “Ethereum’s Internet of Blockchains”.
The project can integrate with any Ethereum-interoperable blockchain and be used to cut down on transaction fees and increase order fulfillment speed.
The Polygon network can process up to 10,000 transactions per second (TPS), with transaction fees costing less than a fraction of a cent.
The network’s scaling solution has seen widespread adoption, causing the Polygon ecosystem to experience exponential growth with over 250 dApps, over 390,000 unique wallet addresses processing more than 20 million transactions.
Just a few weeks ago, Polygon recorded a new all-time high (ATH) in the number of daily active addresses on its network.
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