DeFi on layer 2 starts showing its potential
QuickSwap, a leading decentralized exchange (DEX) running on the Polygon Network offering users an arguably faster and cheaper version of the popular Ethereum DEX Uniswap has seen a massive uptick in usage. In the last 7 days, the number of users on the platform has increased by over 210% to almost 27,000.
This increase of active users also had a considerable impact on the other key metrics of the DeFi platform. The number of transactions has shot up to over 440,000, an increase of 240%, while transaction volume has swelled to an impressive $1.39 billion.
Moreover, we see that the average transaction on the platform is somewhere around an impressive $3,159. Arguably, this indicates that QuickSwap is maturing, as users are becoming more comfortable using bigger transactions. They are clearly becoming an established decentralized exchange (DEX).
Another chain and dapp ecosystem seeing success recently has been the DeFi dapps on Binance Smart Chain. Comparing QuickSwap’s success to another similar dapp over on BSC can put the growth into perspective more. Looking at PancakeSwap we see a decrease in their metrics across the board over the last 7-days. Moreover, PancakeSwap still has more than twice the number of transactions and volume. These decreases may be a testament to the idea that customer loyalty is hard to come by in a sector competing on low fees, APY, and speed.
Meanwhile, Ethereum token swapping platform Uniswap has seen almost 300,000 users and over $370 billion in volume. Showing that while higher than average gas fees are an obvious issue Ethereum dapps are still retaining users and value.
Polygon on the rise
Ever since the name change from Matic to Polygon, there has been a renewed sense of enthusiasm surrounding the protocol to develop a DeFi ecosystem that matches the competition. Polygon appears to be reaping the rewards of increased awareness of layer-2 solutions and guides being made available to investors about how to leverage these platforms.
Moreover, further additions to the DeFi ecosystem on Polygon are arriving. As reported, Polywhale Finance made a splash last week as the first yield farming dapp on the network while Aave has been enjoying success since transitioning from Ethereum to Polygon. Another new entrant PolyFox Finance is the latest dapp attempting to make a name for itself.
The token price of Polygon has also been rising in line with the success of the dapps on the platform. In the last 7 days, the price has increased from $0.35 to $0.82 or over 127% at the time of writing.