Polygon’s DeFi scene flourishes: MATIC protocol adoption soars

• Polygon is fueling the growth of the DeFi ecosystem with a massive number of transactions.
• The upside of the MATIC token is high, backed by support from Coinbase and Binance.

The Polygon blockchain has become a notable force in the decentralized finance (DeFi) sector. At the same time, MATIC, the platform’s native token, has seen increased adoption in recent times.

How the polygon works

DeFi opens up many opportunities in the financial sector, from enabling peer-to-peer transactions to eliminating the need for intermediaries. This can all be done via blockchain rails, using Polygon, as revealed in a series of X messages.

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Many decentralized finance applications (dApps) use Polygon to support needs such as borrowing and lending, rewards optimization, and stablecoin integration. Some of the Polygon products used by developers include Polygon PoS, Polygon CDK, and Polygon zkEVM.

With these products, developers benefit from a network and a multitude of toolkits that meet their needs for flexibility, security and scalability. As a result, they are able to scale and create innovative DeFi applications. Some of the dApps built on Polygon include Polymarket, Aave, QuickswapDEX, azuro protocol, Balancer, yearn and others.

With Polymarket, users can trade on the results of future events in sports, politics, crypto, and more. The project recently reached a major milestone as transactions exceeded $62 million in volume in May.

Currently, Aave is the largest DeFi protocol on Polygon with $460 million in TVL. The project offers open source, non-custodial liquidity to earn interest on deposits and borrowing assets. Polygon’s EVM compatibility, PoS system, and developer community make it an ideal environment for Aave. The launch on the network helped kickstart Aave’s DeFi ecosystem, providing a strong source of liquidity for users.

In the meantime, Aave Labs is preparing to upgrade its protocol from V3 to V4. According to previous reports from News flash on cryptocurrenciesthe V4 upgrade is part of its 2030 vision, positioning the protocol for continued success.

MATIC sees increased adoption

MATIC continues to attract a growing number of users to its platform. As previously reported News flash on cryptocurrencies, MATIC has seen almost 10 million users. The increase in activity on the network can be attributed to the growing popularity of the Polygon ecosystem.

Polygon has maintained its position as one of the largest Web3 ecosystems in the world. According to recent data, Polygon has become the second largest protocol in terms of total number of transactions recorded over the last six months.

In addition to Polygon’s popularity, MATIC’s increased adoption can also be attributed to the support of key players such as crypto exchanges Coinbase and Binance. In accordance with what News flash on cryptocurrencies had revealed earlier, the price of the altcoin skyrocketed in 2020, increasing more than 100 times in a few months.

At the time of writing, MATIC is trading at $0.6433, representing a 1.64% decline over the past 24 hours. However, trading volume increased by 4.48% to $300 million, with the market capitalization pegged at $6.3 billion.

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