- Polygon has recorded multiple milestones in recent weeks.
- The network’s booming DeFi scene has elicited a reaction from Polygon co-founder Sandeep Nailwal.
- The Polygon Labs executive has drawn parallels with Arbitrum.
In recent weeks, new milestones have come hard and fast for Polygon, from significant partnerships to MATIC’s soaring price and a boom in DeFi activity. The latter has elicited a reaction from Polygon co-founder Sandeep Nailwal, who drew parallels between the network and Arbitrum One.
“Something Crazy is Going On”
Reacting to the recent spike in Polygon’s DeFi activity in an 𝕏 post on Wednesday, November 15, Nailwal asserted that “something crazy is going on.” The Polygon co-founder quickly drew parallels between the DeFi activity on Polygon and Arbitrum One, the leading Ethereum Layer 2 solution by TVL, noting that it is the first time that they have been comparable in a long time.
Citing DEXScreener data, Nailwal highlighted the closeness of DEX volumes between the two blockchains with a difference of just about $40 million. At the same time, he noted that even more impressively, the number of transactions on the Polygon network at nearly 375k was over twice more than Arbitrum’s at about 158k.
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“This makes me feel that Polygon POS has become the retail’s chain of choice to access Defi,” the Polygon Labs executive enthused.
Nailwal tipped performance optimizations on the Polygon network as the likely catalyst for the recent DeFi boom.
Polygon’s DeFi Explosion
DeFi activity on Polygon has exploded recently, with DEX volumes tapping an eight-month high above $400 million on Tuesday, November 14. These volumes, which have dropped back to $305.59 million per DefiLlama data at the time of writing, still represent a 590% increase in the past 30 days from $44.29 million on October 15.
Source: Artemis
Like the DEX volumes, daily transactions on the Polygon network are also rising. On Wednesday, November 15, Artemis data showed that transactions on the network exceeded 6 million for the first time since October 2021.
On the Flipside
- Several wallets recently sent large amounts of MATIC to exchanges, sparking fears of a sell-off.
- At the time of writing, CoinMarketCap data shows that ARB is posting a 1.26% gain in the last 24 hours and trading at $1.14. On the other hand, MATIC has posted a 1.31% loss in the past 24 hours, trading at $0.8937.
Why This Matters
Arbitrum is the leading Ethereum Layer 2 solution by TVL. Nailwal’s comparison of Polygon with Arbitrum further highlights the significant uptick in DeFi activity on the former.
Read this to learn more about Polygon’s DeFi boom:
Polygon DEX Volume Catapults to 8-Month High Amid 895% Surge
Find out about recent large MATIC transfers to exchanges:
$70M Polygon (MATIC) Hits Exchanges Fueling Price Dump Fears
