Research Summary
The report provides an in-depth analysis of the Polygon network, highlighting its vibrant ecosystem, developer activity, and real-world utility. It also covers the network’s health, key ecosystem segments, and major projects using onchain data. The report further discusses the performance of various sub-ecosystems and applications within the Polygon network.
Key Takeaways
Polygon’s Developer Activity and Ecosystem Growth
- High Developer Activity: Polygon ranks second only to Ethereum in terms of active weekly developers (909) and commits (5,900), indicating a strong developer community and potential for future ecosystem growth.
- Real-World Utility Beyond Speculation: Polygon has a significant number of stablecoin users (1.9M over 30 days), suggesting that the network is being used for more than just DeFi and speculative use cases.
Polygon’s Onchain Economy and Total Value Locked (TVL)
- Vibrant Onchain Economy: Polygon’s onchain economy is one of the largest and most vibrant, with a TVL of $987M. Nearly half of this is attributed to the chain’s leading lending protocol, Aave ($472M TVL).
- Net Positive Inflows: Year-to-date, $1.97B of bridging inflows have come to Polygon (98% from Ethereum Mainnet) vs $1.85B in outflows, indicating real demand for the services in the Polygon ecosystem.
Performance of Sub-Ecosystems and Applications
- DeFi Use Cases Dominate: DeFi use cases are at the heart of Polygon PoS, with over 452M DeFi transactions carried out – more than Arbitrum, Base, and Optimism combined.
- Leading Protocols: The leading three protocols in terms of TVL are Aave (47% of the TVL), Uniswap (12%), and Quickswap (10%).
Actionable Insights
- Explore Polygon’s Ecosystem: Given the vibrant ecosystem, high developer activity, and real-world utility, it may be beneficial to explore the various applications and projects within the Polygon network.
- Monitor Stablecoin Usage: The significant number of stablecoin users on Polygon suggests a potential trend towards non-speculative use cases. Tracking this trend could provide insights into the network’s future growth and utility.
- Consider DeFi Opportunities: With DeFi use cases dominating the Polygon PoS and leading protocols like Aave, Uniswap, and Quickswap showing strong performance, there may be potential to explore DeFi opportunities within the Polygon ecosystem.
