157,000 transactions in the last 7 days!
Leading decentralized exchange and yield farming platform ApeSwap launched on the Polygon Network last week. Having originally launched on Binance Smart Chain it’s seeing massive success as cross-chain applications appear to be becoming the norm.
In the last 7 days, ApeSwap on Polygon has processed just over 157,000 transactions from 11,880 active wallets. Generating almost $85 million in value for the token swapping platform. In relation to active wallets interacting with the dapp, this strong performance has pushed ApeSwap to a top 5 position in the Polygon DeFi category on DappRadar. Importantly overtaking rival platforms Aave, ParaSwap, and 1inch Exchange.
Looking at the causes of the rush to the platform on Polygon, one is certainly its yield offers. Furthermore, as reported, the MATIC token has performed very well throughout the recent market crash and is expected to continue its trajectory over the coming years. In a similar way, ApeSwap has become a leading DeFi platform, therefore, making its native BANANA token more desirable as a long-term hold.
Locking up tokens in WMATIC/BANANA pool for example can earn users a 260% APR paid in WMATIC and BANANA tokens. Whilst locking up stablecoins such as DAI and USDC will earn users a more modest 10%.
Most interesting is that by launching on Polygon, ApeSwap wasn’t looking to circumnavigate gas fees or even offer users anything particularly new. Instead, it looks like they are trying to gain some market share in a growing network. As reported recently, Polygon has seen unparalleled growth throughout 2021. Native dapps like Quickswap quickly gained traction. Whilst Ethereum finance apps like Aave and 1inch ported across to the network to offer their users lower fees. ApeSwap appears to be trying to capitalize on the somewhat fickle, yield-chasing nature of newer crypto users. Importantly, two of the platform’s most innovative services IAO and Non Fungible Apes are not available when interacting with the Polygon version at the time of writing.
It will be fascinating to observe how the Polygon DeFi ecosystem continues to evolve now that Ethereum gas fees have normalized. As reported last week, we have seen a dip in the number of unique active wallets interacting with two leading finance protocols on Polygon as we head into July. Can the fledgling network maintain its strong growth and continue to build on it? Time will tell.
What is ApeSwap?
ApeSwap is an automated market maker (AMM), yield farming, and staking platform. Interestingly, the application was actually forked from the leading BSC exchange PancakeSwap and retains much of the same useability. BANANA is the native currency of the ApeSwap platform and allows users to stake, pool, and earn more BANANA tokens with an APY of up to 600%.