Blockchain network Polygon has been in the news for quite a while now and it continues to hit new milestones. The Polygon network has hit a new record-high in daily transaction volumes shotting to a massive 7.4 million. Interesting, Polygon’s transaction volumes have exceeded that of giants like Ethereum (ETH) and the Binance Smart Chain (BSC).
Polygon, a layer-2 scalability solution for Ethereum, hosts a small DeFi application ecosystem which has registered a steady growth in recent times. Besides, Polygon’s network and transaction growth has been stable and organic since most of the Defi has already been tested on Ethereum.
However, Ethereum’s persisting issues with network congestion and high gas fee has forced several DeFi players to consider alternative solutions and the Polygon’s sidechain solution emerging as a hot destination. This was the same reason that the Binance Smart Chain (BSC) also gained strong traction earlier this year.
Although the Polygon network holds a small DeFi application ecosystem, the good thing is that the projects on this platform have been earlier tested on the Ethereum network. Below is a quick snapshot of the number of users for the core DApps available on Ethereum.
As we can see in the above image Quickswap has the maximum number of users exceeding 100K. Quickswap is nothing but a variant of Uniswap on the Polygon blockchain network. Whereas Sushiswap, Aave, and Curve are some of the prominent DeFi apps already on Polygon.
The Aave DeFi protocol has registered a strong growth on Polygon just within three months of its deployment in April 2021. An average user implementing Aave on Polygon can execute about 5 transactions per day. As Chinese journalist Colin Wu reports:
The peak period of transactions from Aave exceeds 25%. The current total lock-up value TVL of Polygon network is about 10.4 billion U.S. dollars, and Aave’s total lock-up value TVL is close to 8.2 billion U.S. dollars.
Indian bockchain startup Polygon has bee doing very well recently secured some good investment from billionaire Mark Cuban. Besides, Polygon MATIC cryptocurrency also found a place in the institutional-grade Bitwise 10 Large Cap Crypto Index last week.