The global adaptation of decentralized finance (DeFi) is advancing at a record pace, while Polygon is making huge strides in scaling Ethereum.
The DeFi sector is booming. In the past seven days, DeFi Logs Total Managed Capital (TVL) has grown from $ 108.93 billion to $ 122.73 billion at the time of publication.
Much of the growth can be attributed to Binance Smart Chain (BSC) and Ethereum (ETH) DeFi protocols. These currently occupy the lion’s share of the overall market and, together with DeFi Llama, reach TVL of US $ 107.2 billion – almost 87.35% of the entire DeFi market.
Not only the DeFi sector and Ethereum have reached new heights this week. In a blog post, ConsenSys announced that the MetaMask crypto wallet now has over five million monthly active users. As of October, that number was still one million users. MetaMask can serve as a classic crypto wallet. Compared to many other wallets, the strength of MetaMask is that users can interact with applications.
MetaMask attributes the reasons for this huge growth to a combination of various factors. On the one hand, interest in decentralized finance applications has increased sharply, and on the other hand, the NFT hype has led more and more newbies to use MetaMask.
Another reason is called, ConsenSys the growing 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 like 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. Developments show that the market is currently not driven by hype but by genuine adaptation.
The extreme congestion on The Ethereum network in recent months has seen ETH transaction fees skyrocket. Sometimes a single swap on the UniSwap decentralized exchange costs more than US $ 100. This momentum has increased demand for alternative smart contract platforms, such as BSC, or projects such as Polygon (MATIC), which deal with scaling solutions.
Polygon, in particular, has gained more and more acceptance this week. This is mainly due to the fact that the Ethereum DeFi Aave (AAVE) protocol has successfully demonstrated how transactions can be outsourced to a sidechain. The Aave-Polygon integration has now brought $ 2 billion in liquidity to the Aave protocol.
This success has now also attracted other DeFi projects, and some of the top protocols have already announced that they will immediately start integrating their protocol into the Polygon side chain. These projects include Pooltogheter (POOL), SushiSwap (SUSHI), Open Sea, Curve Finance (CRV) and Decentraland (MANA), according to Lark Davis.
But not only is the developer community applauding, but investors in particular are happy with the drop in transactions as well. fresh.
It is finally possible again to use the Aave protocol inexpensively. In addition, it can be observed that Ethereum transaction fees have suddenly fell the last days. At the moment, it is not yet clear to what extent this can be traced back to scaling solutions such as Polygon. Nonetheless, we can expect in the coming months that the increasing adaptation of scaling solutions will take more pressure off Ethereum. main network.
In addition, co-founder of Polygon Mihailo Bjelic believes that many of the protocols adopted by Polygon will see Aave growth. This, in turn, could mean that the entire Ethereum DeFi industry will continue to grow in the years to come. weeks.
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