Due to declining patronage of decentralised applications (dApps) and cryptocurrencies in general, Polygon’s TVL hit new lows in the latter days of May.
Polygon has been instrumental in addressing the scalability issues that have arisen as a result of the implementation of blockchain technology. Since the beginning of the year, Polygon has lost 53% of its total value locked, according to data. The Layer 2 scaling solution boasted a TVL of over £4.31 billion on January 1, and it was around £2.2 billion on May 29.
Polygon is a decentralised Ethereum scaling platform that allows developers to create user-friendly protocols and applications with minimal transaction fees in a safe environment.
It has solved the blockchain’s key pain points such as scalability, security, and decentralisation. It is using its scaling solutions such as Avail, Edge, Hermez, Pos, Miden, Nightfall, and Zero to boost the performance of a number of Ethereum dApps.
Polygon is one of the largest NFT blockchains by sales volume, as well as a prominent player in decentralised finance.
Due to new lows in its ecosystem’s dApps, TVL has plummeted in the last of May.
Aave, an open source liquidity protocol, has dropped by over 41% in the last month. Curve, a stablecoin exchange, lost 30% of its TVL in the same time frame. SushiSwap and Quickswap, two decentralised exchanges, have lost over 44% and 41% of their total value locked, respectively.
Arrakis Finance, Balancer, Beefy Finance, Klima DAO, Meshswap, QiDao, Stargate, and Uniswap are some of the other dApps that have contributed to the TVL decline.
Polygon continues to top Algorand, Bitcoin, Cardano, Cronos, EOS, Fantom, Near, Terra, and Waves despite a drop in TVL of about £1.59 billion.
Tether stated on May 27 that its USDT stablecoin is now on the blockchain. Users can use USDT to move funds in and out of Polygon’s ecosystem, and generate yield, with over 19,000 dApps on the platform.
The year 2022 saw Polygon (MATIC) opened 2022 at £2.1 and fall to a 52-week low of £0.40 on May 12. It is currently trading for £0.50. This is a 75% decline in the value since the year started.