Leading protocols see big user surges in the last 7-days
The Polygon network has become home to a bulging array of DeFi applications over the last few months. Moreover, recently rising token prices have positively impacted the key exchange protocols on the network. QuickSwap, ParaSwap, and PolyDex have all recorded big surges in unique active wallets over the last 7-days.
The leading decentralized exchange on Polygon, QuickSwap, has recorded an almost 50% increase in active wallets week over week. Pushing the protocol to 128,170 unique active wallets that transacted over $450 million in the last 7-days. Meanwhile, a relative newcomer to the space, ParaSwap which boasts a slick UX and cross-chain compatibility has seen a 120% increase in active wallets compared to the previous week and $2.1 billion transacted through its smart contracts. Finally, PolyDEX, a yield farming and, Initial DEX Offering (IDO) platform has attracted 50% more active wallets in the last 7-days pushing that number to 4,560 whilst generating over $5.6 million.
Looking at how these platforms fair up against the leading Ethereum decentralized exchanges can provide more context to their overall performance. We see that in the last 7-days QuickSwap attracted a similar number of unique active wallets to its platform as the leading Ethereum DEX Uniswap. At the same time, it eclipsed the second-placed platform SushiSwap which only registered 22,190 active wallets.
Importantly, we see that the value flowing through the Ethereum DEX smart contracts is significantly higher than that seen on Polygon. Further reinforcing the theory that lower value DeFi has found a home outside of Ethereum as price-conscious investors flooded the space looking for cheap and fast transactions. Only ParaSwap can boast making anywhere near the same levels of volume from a relatively low number of users.
As mentioned, crypto token prices have been on the rise these last few days. Arguably since Ethereum’s EIP1559 update rolled out toward the end of last week. The price of the Polygon token has risen 4.7% in the last 7 days, settling at around $1.10 at the time of writing.
As token prices begin to work upwards investors are seemingly coming back to the table. Arguably to purchase tokens still sitting at a lower value than that expected in the next cycle. Alternatively, rising prices can stimulate investors to purchase quickly to not fall victim to potentially higher prices if the upward trend continues. Otherwise known as a fear of missing out or FOMO. What’s interesting is that while we are not seeing any huge surges in activity on Ethereum DeFi protocols we are seeing them on Polygon.
Moreover, investment into exchange tokens has historically been a smart play. QuickSwap announced on the 8th of August that over 150,000 QUICK had now been staked in its pool. While others were quick to point out that the market capitalization of QUICK was $62 million whilst Uniswaps UNI is $14 billion. Investing in an exchange token generally means you have some faith in the operations and longevity of the platform.
Arguably, QuickSwap and other leading Polygon DeFi dapps have offered users exactly what they were looking for at a time when Ethereum transactions hit all-time high fees. At the backend, Ethereum transactions have now normalized and the introduction of EIP1559 will reduce fees further. Nonetheless, investors seem to have forged allegiances with platforms operating on alternative networks.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in ETH, BTC, ADA, NIOX, AGIX, MANA, SAFEMOON, SDAO, CAKE, HEX, LINK, GRT, CRO, SHIBA INU, AND OCEAN.