- Polygon is fueling the growth of the DeFi ecosystem with massive transaction counts.
- The upside for the MATIC token is high, buoyed by support from Coinbase and Binance.
The Polygon blockchain has grown to become a notable force in the Decentralized Finance (DeFi) sector. At the same time, MATIC, the native token of the platform has seen increased adoption in recent times.
How Polygon Works
DeFi opens up a lot of opportunities in the financial industry, from enabling peer-to-peer transactions to eliminating the need for intermediaries. This can all be done through blockchain rails, using Polygon, as revealed in a series of X posts.
DeFi revolutionizes the way we interact with money and financial services.
Polygon PoS, zkEVM and CDK have emerged as top choices for DeFi builders, providing devs scalable networks and tools to build financial solutions — the future of finance is closer than you think.
— Polygon | Aggregated (@0xPolygon) June 7, 2024
Many financial Decentralized Applications (dApps) use Polygon to address needs like borrowing and lending, optimization of rewards, and stablecoin integration. Some of the Polygon’s products used by developers include Polygon PoS, Polygon CDK, and Polygon zkEVM.
With these products, developers receive a network and a host of toolkits that meet their flexibility, security, and scalability needs. As a result, they are able to scale and build innovative DeFi applications. Some of the dApps that have been built on Polygon include Polymarket, Aave, QuickswapDEX, azuro protocol, Balancer, yearn, and others.
With Polymarket, users can trade on the outcome of future events in sports, politics, crypto, and more. The project recently achieved a notable milestone as transactions surpassed $62 million in volumes in May.
At the moment, Aave is the largest DeFi protocol on Polygon with $460 million in TVL. The project offers open-source, non-custodial liquidity for earning interest on deposits and borrowing assets. Polygon’s EVM compatibility, PoS system, and developer community make it an ideal environment for Aave. Launching on the network helped kick-start Aave’s DeFi ecosystem, providing a solid source of liquidity for users.
In the meantime, Aave Labs is set to upgrade its protocol from V3 to V4. Per earlier reports from Crypto News Flash, the V4 upgrade is part of its 2030 vision, positioning the protocol for continued success.
MATIC Sees Increased Adoption
MATIC continues to attract a growing number of users to its platform. As previously reported by Crypto News Flash, MATIC has seen close to 10 million users. The surge in activity on the network can be attributed to the growing popularity of the Polygon ecosystem.
Polygon has maintained its position as one of the largest Web3 ecosystems globally. According to recent data, Polygon has become the second-highest protocol in terms of total number of transactions scored over the past six months.
In addition to Polygon’s popularity, MATIC’s increased adoption can also be attributed to support from key players like Coinbase and Binance crypto exchanges. In line with what Crypto News Flash had earlier disclosed, the altcoin price skyrocketed in 2020, rising by more than 100x in a few months.
As of this writing, MATIC is trading at $0.6433, representing a 1.64% decrease over the trailing 24-hour period. However, the trading volume increased by 4.48% to $300 million, with market capitalization pegged at $6.3 billion.
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