The global adaptation of Decentralized Finance (DeFi) is advancing at a record pace, while Polygon is making enormous strides in scaling Ethereum.
The DeFi sector is on the upswing. In the past seven days, DeFi Logs Total Managed Capital (TVL) climbed from $ 108.93 billion to $ 122.73 billion at press time.
Much of the growth can be traced back to the DeFi protocols of the Binance Smart Chain (BSC) and Ethereum (ETH). These currently occupy the lion’s share of the entire market and together with the DeFi Llama come to a TVL of 107.2 billion US dollars — almost 87.35 percent of the entire DeFi market.
The number of users on MetaMask exploded
Not only the DeFi sector and Ethereum reached new highs this week. In a blog post, ConsenSys announced that the MetaMask crypto wallet now has over five million active users per month. In October, that number was still one million users. MetaMask can serve as a regular crypto wallet. Compared to many other wallets, the strength of MetaMask is that users can interact with decentralized applications.
MetaMask attributes the reasons for this enormous growth to a combination of various factors. On the one hand, the interest in applications from decentralized finance has risen sharply, and on the other hand, the NFT hype has led to more and more newbies using MetaMask.
Another reason is called, ConsenSys the increasing number of users from developing countries.
India and Indonesia are both in the top five countries where MetaMask is used the most. Other developing countries such as Vietnam and Nigeria are also in the top ten.
According to the blog post, many people in these countries do not trust their banks and governments and are therefore looking for alternatives. You will find these alternatives in the world of decentralized finance. Overall, this news is very positive for DeFi-Space. The development shows that the market is currently not driven by hype but by real adaptation.
Polygon scales Ethereum DeFi projects
The extreme congestion on the Ethereum network in recent months has resulted in ETH transaction fees skyrocketing. At times, a single swap on the decentralized UniSwap exchange costs over 100 US dollars. This dynamic has increased the demand for alternative smart contract platforms, such as the BSC, or for projects such as Polygon (MATIC), which deal with scaling solutions.
Polygon, in particular, was able to gain increasing acceptance this week. This is mainly due to the fact that the Ethereum DeFi protocol Aave (AAVE) has successfully demonstrated how transactions can be outsourced to a sidechain. The Aave-Polygon integration has now brought over $ 2 billion in liquidity to the Aave protocol.
This success story has now attracted other DeFi projects as well, and some of the top protocols have already announced that they will immediately begin integrating their protocol into the Polygon sidechain. These projects include Pooltogheter (POOL), SushiSwap (SUSHI), Open Sea, Curve Finance (CRV), and Decentraland (MANA), according to Lark Davis.
But not only the developer community is cheering, but investors, in particular, are also pleased about the lower transaction fees.
It is finally possible again to use the Aave protocol inexpensively. In addition, it can be observed that the Ethereum transaction fees have fallen sharply in the last few days. At the moment, it is not yet clear to what extent this can be traced back to scaling solutions such as Polygon. Nevertheless, it can be expected in the coming months that the increasing adaptation of scaling solutions will further relieve the Ethereum mainnet.
Additionally, Polygon co-founder Mihailo Bjelic believes that many of the protocols Polygon will adopt will see Aave-like growth. That, in turn, could mean that the entire Ethereum DeFi sector will continue to grow in the coming weeks.
P.S. You Can Support me For Free Through ALL of these Links and earn some Crypto/Money Yourself! https://allmylinks.com/zealdorn
Disclaimer: These lines are not a substitute for investment advice, investments in the crypto market are made at your own risk. Invest only as much as you are willing to lose. I get commissions for purchases made through links in this post.