Active users grow 75% since last week
The Polygon network version of the leading decentralized exchange SushiSwap, Sushi, is rapidly climbing the DeFi ranks on DappRadar. The DeFi platform attracted 75% more users in the past 7 days, compared with the same time period before.
Cheaper fees and faster transactions appear to be attracting more savvy investors as the multichain paradigm starts to take hold. Moreover, liquidity on Sushi has returned to a pre-May 21’ price crash level of around $5 billion. Potentially signaling that hungry investors are starting to come back to dine on Sushi.
At the time of writing, the Polygon network version of Sushi has attracted 21,690 unique active wallets, a 75% increase week over week. These wallets helped grow the number of transactions by almost 50%, reaching 86,580 which drove $21.6 million in volume through the platform’s smart contracts.
Looking closer at the number of UAWs and transactions on Sushi we see a spike on the 3rd September where users climbed to 7.5k and transactions hit 17.1k. Digging deeper on Twitter reveals a few catalyst events. Importantly, the opportunities available causing the surges were only available to those users interacting with the dapp using a Polygon blockchain wallet. Such as Metamask, set to the Polygon network.
On the 2nd of September, a new pool launched on Sushi offering 2x rewards and a juicy APY of 2335% on the GHST/MATIC or GHST/SUSHI pair. Since it proved so popular, the APY is now far reduced. Down to 52% at the time of writing.
Still, it had the desired effect, driving a wave of users into the platform and increasing the volume to over $409 million on the 3rd of September.
Looking at the farming opportunities available to Sushi users it’s clear that pairs related to gaming and play-to-earn tokens are offering the highest rates of APY right now. As discussed above, GHST is the token associated with the Aavegotchi dapp. A gamified DeFi experience offering users the ability to breed and stake NFT creatures for a passive income. Further pairs like Decentralands MANA and the Axie Infinity token AXS farmed with WETH look to also be returning some good percentages.
Moreover, the gaming category on Polygon is way more active than on Ethereum right now. Presumably, developers are preferring to launch their dapps in the fast transaction, cheap fee environment provided by Polygon. In the last 7-days, the top three game dapps on Polygon have grown impressively. Interestingly, an Axie Infinity copycat, Meeb Master, is riding high having attracted almost 4,000 active users in the last week. In addition,’] REVV Racing is attracting players with its NFT-powered play-to-earn racing tournaments.
GameFi Here to Stay
DeFi and gaming are merging in fascinating ways at the moment. Gamified investment opportunities are appearing on Polygon and BSC weekly. Bridging the gap between complex financial instruments and making a side income doing something entertaining. Nonetheless, DeFi dapps are not irrelevant in this emerging play-to-earn wave. As we see with Sushi, the opposite is true.
As play-to-earn and gaming projects look to gain traction they will increasingly turn to exchange and farming platforms to offer them liquidity. Additionally, these gaming projects can offer the exchange platform’s community early access to their native tokens. In a more simple way, distributing more of the gaming platforms’ native tokens into circulation can only be a positive thing for awareness and onboarding.
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, MATIC, SAFEMOON, HEX, LINK, GRT, CRO, OMI, USDT, SOL, SHIBA INU, AVASTR, RAY, BOSON, AND OCEAN.