Polygon (MATIC) exploded after expanding DeFi

On-chain data shows that Polygon (MATIC) is catching up with competitors like Binance Smart Chain.

Polygon’s on-chain activity showed exponential growth last month, largely driven by DeFi projects expanding to the platform.

Polygon is experiencing a growing sense of DeFi

As Ethereum faces scaling problems and high transaction fees, many DeFi users and developers are looking for an additional network that can support a larger transaction load.

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 locked-out value (TVL) is close to $ 2 billion, about a third of BSC’s TVL is $ 6.6 billion.

In fact, Polygon is experiencing a growth pattern similar to the one that BSC experienced in Q1 / 2021. On-chain data shows that the daily transactions of the network have doubled just in the last week, starting at 500,000 and growing to 1 million transactions per day.

Aave and other coins are catalyzed for growth

The growth started as popular crypto lending platform Aave expanded to Polygon. Aave’s version of Polygon reached over 1.6 billion in liquidity within a few weeks of its launch.

In addition to Aave, mStable has also expanded to Polygon. Reported that within 24 hours of its launch, its version of Polygon saw deposits increase by more than $ 18 million – more than half of the $ 32 million in deposits the project has attracted on Ethereum.

Curve, another DeFi trading platform, has also expanded to Polygon recently. Report total deposit of 100 million USD within one week.

In addition, DEX Quickswap is growing rapidly. Dex has benefited from the growing participation of Aave users, who have brought in hundreds of millions of dollars.

Thanks to this growth, Polygon’s native token (MATIC) has more than doubled in value in just one day. On April 26, the token started at $ 0.36. On April 27, MATIC quickly hit an all-time high of $ 0.87.

The data shows that there are only 1.1% Polygon (MATIC) left on exchanges.

At the time of publishing, MATIC is trading at $ 0.82 and has a market cap of $ 4.9 billion, according to CoinGecko.

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