Weekly Recap Series of Cryptodaily.io will be updated weekly with all the information readers need on Polygon: On-chain data analysis, weekly winner, project of the week, updated from projects, partnership, etc.
We believe this series by deep-dive and synthesizing will give you an overview on Polygon every week.
Our Weekly Recap Series will consist of 4 main parts as follows
- Data on-chain: Update and analyze data located on the blockchain such as Daily transactions, Unique addresses, Gas price, etc
- Panorama of the ecosystem: Analysis of the Polygon ecosystem last week
- Important updated
- News partnership
1. Data on-chain
From ATH over 9 millions on June 16th, daily transactions in Polygon have gradually dropped 34% to approximately 6 millions in less than 30days. However, the number of new addresses seen from the ATH has increased dramatically up to 350% leading to 199 thousands new addresses seen on July 7th. The humongous gain in daily new addresses may be a sign of attention caused by continuous good partnership news with big projects and great jump in market capital.
Within one day, total value locked (TVL) has gained a significant number up to $700 millions which made a total of $5.12 billions on July 7th. QuickSwap and AAVE are accounted for $70 millions in that TVL gain from Polygon. AAVE has contributed a large amount of liquidity for Polygon since the announcement of AAVE X Polygon partnership. Currently AAVE has added $2.4 billions TVL in 1 day (June 27th- 28th) to Polygon.
Current gas price is about 25 Gwei which is very close to half of gas ATH 65 Gwei. Number of dApps on Polygon has risen to a number of 450+ projects, therefore, liquidity on the blockchain platform would be utilised to run through all dApps. Gas Price gaining is expectable while the blockchain attracts native users.
Price has formed a symmetrical triangle (green) since the low set of $0.93. This triangle has held the price for over two weeks and it is coming to an end in 2 days. Once price breaks out, we can expect a large move accordingly. A break to the downside will likely send $MATIC back to $1.03 and a break to the upside will result in a push to $1.16-$1.22.
Before the price is completely free, it must break and hold the 100 MA in addition to the top trend of the triangle. The 100 MA has acted as resistance for a long time as it held the price from starting an uptrend. If the bulls manage to break above these two marks, price will likely fight the major resistance found at $1.22. If this is deemed successful, the skies are clear for a large push to the 1st target and beyond.
2. Panorama of the ecosystem
450+ projects on Polygon is a great number which proves Polygon a very potential layer 2 platform for dApps developing. SushiSwap, AAVE, MakerDAO are a few protocols which have landed on Polygon because of low price, less congestion and are fully EVM compatible.
QuichSwap is the best social signal on Polygon, also the biggest native DEX regarding trading volume and number of pairs. Most of the new tokens on Polygon choose QuickSwap to be their first exchain platform to attract liquidity.
Hackmoney 2021, with the sponsor of 14 projects from Polygon Ecosystem, is expected to build more products/protocols to elevate DeFi.
Polygon also achieved significant dominance figures from both social signals and market capital compared to last year.
Quickswap never stops owning the biggest DEX parameter on Polygon. However, ParaSwap and Dfyn are fighting against each other while ParaSwap has higher trading volume, Dfyn has higher transaction numbers and users. This is probably because ParaSwap is a DEX aggregator with low slippage which is much more suitable for larger transactions.
$MATIC has continuously been awarded to liquidity providers to attract more liquidity flow to the platform. DeFi on Polygon is developed with both native (Qi DAO, Adamant…) and migrating forces (AAVE, SushiSwap…)
After $MATIC and $QUICk, there are still a lot of low-cap gems in the ecosystem. However diamond hands are needed.
3. Important Updates
At the beginning of the week, Polygon announced a new feature for blockchain developers which is named Avail. Avail provides a common data availability layer that can be used by varying execution environments such as standalone chains, sidechains, and off-chain scaling solutions. There are 2 keys objectives mentions by Polygon about the newly invented feature:
– Enable standalone chains or side chains with arbitrary execution environments to bootstrap validator security without needing to create & manage their own validator set by guaranteeing transaction data availability
– Layer-2 solutions such as Validiums to offer increased scalability throughput by using Avail as an off-chain data availability layer
Binance has supported $MATIC deposit from direct Polygon network. Currently Binance only has depositing for $MATIC, not withdrawing.
DinoSwap has raised $4 million from top investors including The Spartan Group, OKEx Blockdream Ventures, Coin98 Ventures
Seems to be the most popular Auditor for the latest generation DeFi protocol, Certik, a cybersecurity protocol backed by Binance, has launched Skyner on Polygon to provide real-time community-driven alerts for potential threats in the smart contracts. This is a critical move to further improve the security of DeFi dApps built on Polygon.
PancakeBunny has landed on Polygon, bringing several new pools with APY up to 4786%. These new pools are:
Balancer has launched on Polygon, providing liquidity utilization for the blockchain platform.
The P2P insurance protocol for DeFi powered by Polkadot is live now on Polygon Mumbai Testnet.
In conclusion, Polygon is still in development for more layer 2 technology like zk Rollups, Optimistic Rollups and Valadium Chain. Full potential of the blockchain still needs time and patience to be fully discovered.