Despite the bear market, Polygon [MATIC] has shown tremendous growth in the DeFi space over the last few days. In addition to working with web 2 companies, the layer 2 solution collaborated with DEXes such as Uniswap [UNI]. This collaboration had a positive impact on both protocols.
With this collaboration, Polygon assisted Uniswap in bringing more traders to the DEX and allowing liquidity protocols to engage in more rebalancing.
Polygon benefited from this collaboration as well, and has seen improvements in the DeFi space.
For example, the network’s TVL increased significantly over the last week, increasing by 50 million. Polygon’s dApp activity has also increased. According to Dapp Radar data, the majority of dApps on Polygon experienced growth in terms of unique active wallets.
The low gas fees on Polygon could be one reason for the increased DeFi activity. According to Dune Analytics, the average gas block usage on Polygon has increased significantly in the last week.
According to Token Terminal, the fees collected had a positive impact on Polygon’s revenue, which increased by 97.3% in the last 24 hours. Polygon had a total revenue of $2.6 million at the time of writing.
Despite performing well in the DeFi sector, Polygon’s DEX activity has decreased in the last three months, falling from $95.98 million to $55.35 million at press time.
Unfortunately, the improvements in Polygon’s DeFi space had no effect on the token.
Polygon was unable to bring new addresses to MATIC. This was demonstrated by a decrease in network growth over the previous month.
Old MATIC holders had no reason to be optimistic either, as the MVRV ratio remained negative. A negative MVRV ratio indicated that MATIC holders would not profit if they sold their positions at press time.
Despite these factors, the daily active address on the Polygon network has increased in recent days. This surge in activity may alter the price trajectory of MATIC in the near future.