Polygon showed tremendous growth in the DeFi space thanks to its partnership with Uniswap. However, despite the growth, volume on Polygon DEXen declined.
Polygon [MATIC] was observed to show tremendous growth in the DeFi space over the past few days, despite the bear market. In addition to working with web 2 companies, the Layer 2 solution worked with DEXs such as Uniswap [UNI]. This alliance had a positive impact on both protocols.
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With this partnership, Polygon helped Uniswap get more traders on the DEX and allowed liquidity protocols to rebalance more.
The protocol started the year with a spot trading volume of $1.96 billion in January 2022. The annual volume reached a staggering $28 billion in the year 2022.
The month of November received the highest volume of $3.9 billion. pic.twitter.com/6wrVmWVfl7— Polygon – MATIC 💜 (@0xPolygon) January 4, 2023
Polygon – Uniswap’s dApp corner
Polygon also benefited from this partnership and noted improvements in the DeFi space.
For example, the network’s TVL has risen significantly over the past week, growing by 50 million in that time. The dApp activity on Polygon also increased. According to data from Dapp Radar, most dApps on Polygon saw growth in terms of unique active wallets.
Source: Dapp Radar
One reason for the increasing DeFi activity is the low gas costs on Polygon. According to Dune Analytics, the average use of gas blocks on Polygon has increased significantly over the past week.
Fees collected had a positive impact on Polygon’s revenue, as it increased by 97.3% in the past 24 hours, according to Token Terminal. At the time of writing, Polygon accumulated $2.6 million cumulatively in revenue.
Source: Dune Analysis
While Polygon performed well in the DeFi sector, its DEX activity fell from $95.98 million to $55.35 million over the past three months at the time of writing.
Source: Dune analysis
Unfortunately, Polygon’s improvements in the DeFi space did not positively impact the token.
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Polygon failed to attract new addresses for MATIC. This was indicated by network growth, which slowed over the past month.
Old MATIC holders also had no cause for optimism as the MVRV ratio remained negative. A negative MVRV ratio implied that MATIC holders would not make a profit if they sold their positions at the time of writing.
Source: Sentiment
However, despite all these factors, the daily active address on the Polygon network has increased in recent days. This increase in activity could change MATIC’s price trajectory in the coming future.
This post Will Polygon’s partnership with Uniswap help MATIC reach the moon?
was published first on https://ambcrypto.com/will-polygons-collaboration-with-uniswap-help-matic-reach-the-moon/
