Polygon Transactions Explode After DeFi Expansion
Key Takeaways
- Polygon is catching up to its main competitor, Binance Smart Chain, as the leading Ethereum bridge platform.
- Polygon’s growth took off when the popular crypto lending platform Aave moved to the sidechain network.
- Other apps like Curve Finance and mStable have also expanded to Polygon and driven adoption of the network.
Polygon’s on-chain activity suggests exponential growth over the last month, largely driven by DeFi projects expanding to the platform.
Polygon Experiences DeFi Growth
As Ethereum faces scaling issues and high transaction fees, many DeFi users and developers are searching for a complementary network that can support greater transaction loads.
While Binance Smart Chain (BSC) remains the leading Ethereum bridge network, Polygon is quickly catching up. According to data from The Block, Polygon’s total value locked (TVL) is nearing $2 billion, about one-third of BSC’s TVL of $6.6 billion.
In fact, Polygon is experiencing a growth pattern that is similar to the one that BSC experienced in Q1 of 2021. On-chain data shows Polygon’s daily transactions have doubled in the last week alone, beginning at 500,000 and growing to 1 million transactions per day.
Aave and Others Catalyzed Growth
Polygon’s growth began when the popular crypto lending platform Aave expanded to Polygon. The Polygon version of Aave reached more than 1.6 billion in liquidity within a few weeks of launch.
Apart from Aave, mStable has also expanded to Polygon. It reported that within 24 hours of launch, its Polygon version saw deposits grow by over $18 million—more than half of the $32 million in deposits that the project has attracted on Ethereum.
Curve, another DeFi trading platform, also expanded to Polygon recently. It reported $100 million in total deposits within a week.
Additionally, Polygon’s native DEX Quickswap is also growing fast. It says it has benefited from rising participation from Aave users, who have brought on board hundreds of millions of dollars.
Thanks to this growth, Polygon’s native token (MATIC) has more than doubled in value in a single day. On Apr. 26, it began with a price of $0.36. On, Apr. 27, it briefly touched an all-time high of $0.87.
At the time of publishing, MATIC is trading at $0.81 and has a market cap of $4.9 billion, according to CoinGecko.
Disclosure: The author did not hold crypto mentioned in this article at the time of press.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article