Welcome back to the Polygon Weekly Overview. The best place for Polygon community members to get up to speed on the chain’s latest updates, metrics, releases, insights, ecosystem developments and more. All in one place.
The percentages and metrics are based on a 7-day timeframe, unless noted otherwise.
What happened: Polygon PoS stablecoin supply grew 17% to $2.3 billion, year-to-date, according to Dune data. This growth was led by DAI, USDC and USDT with payments and lending contributing to this rise.
Why does it matter: This increased activity shows growing trust and use in Polygon’s infrastructure for stablecoin transactions. In April, Polygon PoS’ USDC velocity hit all-time highs of 4.72, meaning the network saw each USDC token, over 900 million of them, change hands nearly five times per month on average.
In the same period, the network also saw both USDC and USDT monthly active addresses hit all-time highs of 2.92 million and 1.77 million, respectively, according to Dune Analytics data. Similarly, peer-to-peer stablecoin transfers also rose to 2.42 million on the network, hitting all time highs last month as well.
This high velocity indicates economic activity and efficient capital utilization within the Polygon ecosystem.
Furthermore, Polygon’s lending TVL has risen 35% on the month to $484.1 million, with protocols like Morpho and Fluid leading the way. USDC and USDT are the primary assets for these lending protocols, with peer-to-peer payments and DeFi growth reinforcing each other’s expansion.
This rising stablecoin supply creates deeper liquidity pools for lending markets. In the past 30 days, Morpho Blue and Fluid TVL hit $107.7 million and $43.02 million, up 75% and 37% respectively, according to DeFiLlama.
These protocols are the second and third largest lending protocols on Polygon PoS, just two months after launch. This highlights the growing demand for onchain lending and DeFi on Polygon.
The big picture: Lending makes up 51.28% of Polygon’s TVL of $944 million. The recent rise in the network’s stablecoins supply indicates increased DeFi activity happening on the network.
Polygon’s DeFi ecosystem is maturing with lending protocols like Fluid and Morpho building financial infrastructures that are growing rapidly. The sector’s dominance and growing stablecoin supply points to significant economic activity happening on the network, rather than just speculative trading.
Onchain lending has found product-market fit across the broader crypto industry, with $52.14 billion in TVL. What’s notable is how these infrastructures improve capital efficiency, especially in borrowing and lending.
The support for multiple types of collateral and currencies, along with automated vaults like Morpho, can create experiences that are faster and more efficient than traditional finance. These systems also offer clarity through concepts like liquidation loan to value (LLTV) and highly liquid markets where users can borrow and lend at scale without intermediaries.
These infrastructures can bridge traditional finance to DeFi by enabling institutions to leverage onchain capital efficiency for cross-border transactions in multiple currencies, especially with fast finality and verifiability on Polygon.
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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.