DeFi protocol Sushi has grown its user base 120% in the past 7 days to 6,450 active wallets on the Polygon blockchain. Thanks to the low fees on the Polygon blockchain, these users could do more than 58 thousand transactions.
With $176 million in volume from 6,450 user wallets in the past week, Sushi has already grown to be the third biggest dapp on Polygon. Only QuickSwap and Aave have more activity, registering 34,250 and 7,430 wallets respectively. However, Sushi’s 404% growth in volume puts the dapp alongside these two DeFi protocols.
Despite the benefits of cheaper trading on Polygon, SushiSwap on Ethereum still has a lot more activity. In the past 7 days alone the Ethereum DEX has serviced 17,250 different wallets, creating more than $1,5 billion in volume. Therefore it’s safe to say that Sushi on the Polygon blockchain, is still the little brother of Ethereum’s SushiSwap.
But the question is, for how long?
DeFi moving to alternative chains
While activity on the Ethereum blockchain isn’t slowing down, activity on alternative blockchain solutions is increasing. Since the start of this year BINANCE Smart Chain has developed into a serious competitor in the DeFi market segment. Cheaper and faster transactions allow users with smaller amounts of money to participate meaningfully in the DeFi economy.
Platforms like BakerySwap and Pancake Bunny serve 60 thousand or more users per week each. In addition PancakeSwap is serving half a million wallets per day. This just shows that users with smaller pockets are also interested in DeFi. However, instead of using Ethereum they prefer to use cheaper transactions to compete in yield farming activities. That’s why BSC and Polygon are seeing serious growth.
Ever since the name change from Matic to Polygon, there has been a renewed sense of enthusiasm surrounding the protocol. We see a clear desire to develop a DeFi ecosystem that matches the competition. Polygon appears to be reaping the rewards of increased awareness of layer-2 solutions and guides being made available to investors about how to leverage these platforms.
