- Polygon has shown exponential growth in the DeFi space due to its partnership with Uniswap.
- However, despite the growth, Polygon DEXes have decreased in volume.
ribbed [MATIC] It has been observed showing explosive growth in the DeFi space in recent days, despite the bear market. In addition to partnering with Web 2 companies, the Layer 2 solution is partnering with DEXs such as Uniswap [UNI]. This alliance affected both protocols in a positive way.
19.00x increase on the cards if MATIC hits ETH market cap?
Through this partnership, Polygon Uniswap helped attract more traders to DEX and allowed the liquidity protocols to participate in more rebalancing.
The public protocol started at $1.96 billion in spot trading in January 2022. The annual volume was a whopping $28 billion by 2022.
November received the highest volume of $3.9 billion. pic.twitter.com/6wrVmWVfl7
– Polygon-matic 💜 (@0xPolygon) January 4, 2023
Polygon – the corner of the Uniswap application
Polygon has also benefited from this partnership and has seen improvements in the DeFi space.
For example, the network’s TVL has increased dramatically in the past week, increasing by 50 million over that period. dApp activity on Polygon has also increased. According to data from Dapp Radar, most of the dApps on Polygon have seen growth in terms of unique active wallets.
One of the reasons for the increase in DeFi activity is the drop in gas fees on Polygon. According to Dune Analytics, Polygon’s average gas block usage has increased significantly over the past week.
Combined fees positively impacted Polygon’s revenue as it increased by 97.3% in the last 24 hours, according to Token Terminal. At the time of writing, Polygon has accumulated cumulative revenue of $2.6 million.
However, while Polygon has performed well in the DeFi sector, DEX activity has declined over the past three months, dropping from $95.98 million to $55.35 million at press time.
Unfortunately, improvements in Polygon’s DeFi space have not had a positive impact on the token.
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It’s all about Matic
Polygon failed to attract new titles to MATIC. This was evidenced by the network’s growth, which has been declining in the past month.
Old MATIC holders had no cause for optimism, as the MVRV ratio remained negative. A negative MVRV ratio means that MATIC holders will not profit if they sell their positions at the time of publication.
However, despite all these factors, the daily active headline on the Polygon Network has increased in recent days. This increase in activity may change the course of MATIC’s price in the near future.