DeFi aggregator 1INCH launched last week on the Polygon blockchain and has now grown to 830 active wallets yesterday. The token swapping service is also active on Ethereum and BINANCE Smart Chain and attracts an average of 8,646 daily active wallets across the three blockchains.
1inch is just getting started on Polygon, and therefore we don’t see high transaction volumes yet. On Tuesday 1inch had over $5 million in transaction volume, while the average of the past few days has been $2,4 million from an average of 463 wallets.
These aren’t impressive numbers. However, the story is different when we also look at BSC and Ethereum.
When it comes to active wallets, BSC and Ethereum compete with each other: 3,529 vs 4,654 on average. However, the transaction volumes are miles apart. Where BSC had an average of $18,8 million per day, Ethereum had $180 million on average. This fits the narrative that DeFi on BSC works well for users with smaller pockets.
DeFi on Polygon
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. Instead of using Ethereum users with smaller pockets prefer to use cheaper transactions to compete in yield farming activities. That’s why BSC and Polygon are seeing serious growth.
Despite Polygon being the smallest of the three 1inch branches, the DeFi sector on Polygon is seeing tremendous growth in recent weeks. Sushi grew its user base 160% to 8,380 active wallets in the past 7 days, while ParaSwap had 112% growth to 5,470 wallets. Other protocols like PolyZap and ComethSwap also grew significantly.
The market leader on the Polygon blockchain is QuickSwap, which had 37 thousand active wallets last week. That’s an increase of 24% week over week.
