Polygon Sees User Growth While DeFi Usage Drops

polygon defi

ParaSwap on Polygon up 96%, PancakeSwap drops 22%

Binance Smart Chain and Ethereum are seeing a decrease in user activity across their DeFi platforms, but activity on Polygon increased. PancakeSwap and Uniswap had a drop in active wallets over the past 7 days. At the same time QuickSwap and other Polygon-based have been gaining traction.

As token prices have difficulty to find their way up, yield farming seems to become a less popular activity for investors. Leading yield farming platform PancakeSwap on Binance Smart Chain saw its user base drop 22% to 1,12 million active wallets over the past 7 days.

During the same period Uniswap saw a drop of 2% on its V2 version, while the V3 version even dropped 7% in active wallets. Even though there are some exceptions, most DeFi platforms on Ethereum and Binance Smart Chain have seen a decrease in active wallets.

This downtrend can also be caused by several security breaches in recent weeks, which seem to damage to image of DeFi on Binance Smart Chain in particular. In recent weeks platforms like Pancake Bunny, BurgerSwap and Belt Finance have all become victim of these types of exploits.

How different things are on the Polygon blockchain. QuickSwap, ParaSwap, Sushi, Polycat Finance and Aave all saw their user activity increase. ParaSwap almost doubled its user base to more than 12,640 active user wallets. It’s also important to note that DeFi on the Polygon blockchain can’t compete yet with BSC or Ethereum when it comes to active user wallets.

With QuickSwap, SushiSwap and Aave the Polygon blockchain already offers some familiar brands that gain traction. Furthermore, BSC-native Autofarm recently expanded to Polygon as well. As more projects find their way to the sidechain solution, it’s likely that user numbers will increase in the weeks to come.

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