The Polygon blockchain network has been in the news for a while and continues to hit new milestones. The Polygon Network has hit a new record high in daily transaction volume, which has risen to a massive 7.4 million. Interestingly, Polygon’s transaction volume has exceeded that of giants like Ethereum (ETH) and the Binance Smart Chain (BSC).
The total daily transaction volume of the Polygon network reached a new high of 7.4 million, exceeding the current total daily transaction volume of Ethereum and Binance Smart Chain. pic.twitter.com/MY4K835I3Y
– Wu Blockchain (@WuBlockchain) June 6, 2021
Polygon, a Layer 2 scalability solution for Ethereum, hosts a small DeFi application ecosystem that has seen steady growth recently. In addition, Polygon’s network and transaction growth has been stable and organic as most of the Defi have already been tested on Ethereum.
However, Ethereum’s ongoing problems with network congestion and high gas fees have forced several DeFi players to consider alternative solutions and develop Polygon’s sidechain solution as a hot target. This was the same reason the Binance Smart Chain (BSC) also picked up a lot earlier this year.
A look into Polygon’s DApp ecosystem
Although the Polygon Network has a small DeFi application ecosystem, the good thing about it is that the projects on this platform have been previously tested on the Ethereum network. Below is a brief snapshot of the number of users for the core DApps available on Ethereum.
As we can see in the image above, Quickswap has the maximum number of users over 100,000. Quickswap is nothing more than a variant of Uniswap in the polygon blockchain network. While Sushiswap, Aave, and Curve are some of the most popular DeFi apps that are already available on Polygon.
The Aave DeFi protocol saw strong growth on Polygon within three months of its deployment in April 2021. An average user who implements Aave on Polygon can run around 5 transactions per day. As the Chinese journalist Colin Wu reports:
Aave’s Transaction Peak Time exceeds 25%. The current total lock-up value TVL of the Polygon Network is approximately $ 10.4 billion, and Aave’s total lock-up value TVL is nearly $ 8.2 billion.
The Indian bockchain startup Polygon has done very well lately and has secured some good investments from billionaire Mark Cuban. In addition, the cryptocurrency Polygon MATIC also found a place in the institutional Bitwise 10 Large Cap Crypto Index last week.
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About the author
Bhushan is a FinTech enthusiast and has a keen understanding of the financial markets. His interest in business and finance draws his attention to the emerging blockchain technology and cryptocurrency markets. He is constantly in a learning process and motivates himself by sharing the knowledge he has acquired. In his spare time he reads crime novels and sometimes explores his cooking skills.