The total value locked (TVL) of Polygon, also known as MATIC, saw a huge increase in the past month. The TVL sprung up by a whopping 1,102% within just one month. A report from DappRadar reveals that the spike in TVL of the mid-cap coin raised its total locked value in liquidity pools to $5.7 billion for the month of May.
TVL of MATIC Keeps Increasing Rapidly
Interestingly, the token has shown no sign of slowing down just yet. The month of June has barely begun and the token has hit new highs in terms of its locked value. At the moment, it has a TVL worth $7.73 million. This statistic was revealed in a chart shared by DeFiPulse on Saturday afternoon.
Earlier this year, MATIC consistently had a near constant TVL value. The months of January, February and March saw no significant increase in the asset pool of the token. However, as from mid-April, the token’s pool growth as well as its market value gradually became noticeable.
The month of May recorded the highest increase in pool value of MATIC and the token has equally kicked off well this month. At the moment, the pools’ locked assets are at an all-time high.
Polygon Address Activity Grew by 4X in May
The TVL in liquidity pools isn’t the only growth Polygon is currently experiencing. Data from DappRadar went on to reveal that the total number of different addresses that interacted with Polygon increased by 4x in the month of May. Earlier on in the month of April, there were just about 8500 unique addresses interacting with Polygon. However, the numbers have rapidly surged in record time. The month of May recorded over 36000 unique addresses that interacted with Polygon.
What Could be the Reason Behind Polygon’s Growth?
The DappRadar team provided two possible reasons for the growth of Polygon. Firstly, famous American billionaire and Shark tank investor Mark Cuban revealed that he had invested in Polygon. This caused interest in the asset to surge, and thus the TVL of the token surged.
Secondly, the Polygon protocol has proven to be a reliable and efficient platform for blockchain developers to build. The protocol is super fast and cost effective when compared to the famous Ethereum protocol. In recent times, existing DeFi apps have been migrating to Polygon from the Ethereum network due to the superb features and structure of the Polygon network. New projects have also opted for the Polygon network, turning away from the high transaction costs and limited speed of the ETH network. The surging interest by DeFi platforms surely fueled the growth of Polygon in the past few months.
The Polygon token (MATIC) has seen a 92.6% growth in the past month despite the general crypto market dump. The token is currently valued at $1.57 per token. Its crypto market cap is currently close to $10 billion and is ranked 16 among all cryptocurrencies in the world in terms of market capitalization.
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