Polygon Saw 1,102% Growth in TVL, BSC TVL Recorded 50% Decrease in May

DappRadar’s latest report shines a light on a number of key areas of the decentralized finance (DeFi) sector, including the popularity spike of Polygon (MATIC) and the continued success of non-fungible tokens (NFTs). 

A few general market numbers from the report include one million unique active wallets in the blockchain industry. Of those one million wallets, Binance Smart Chain (BSC) and Worldwide Asset eXchange (WAX) account for 80% of it. However, BSC total value locked reportedly decreased by 50%.

Meanwhile, 80% of the total value locked (TVL) goes to Ethereum’s DeFi ecosystem. Once again, BSC leads the blockchain industry by a fair margin, with unique active wallets eclipsing 417,000. One market that took a dip, according to the report, was that of NFTs.

NFT craze is calming down

2021 has been the year of NFTs. From massive art sales in the tens of millions to trading cards going digital, non-fungible tokens have made a lot of headlines, this year. Many wondered when, if ever, NFTs’ meteoric rise might slow and May may have been the answer. While the NFT industry is still on everyone’s mind, at least statistically, it did stumble a bit. 

NFT sales slipped down 5% in terms of volume in May, with $350 million sold. 

While this does mark the first real dip in the NFT market, it should be noted that it came during a significant market crash, which saw cryptocurrencies take a nosedive. Still, users have bought, traded, and sold an average of 85,787 NFTs per day, with a value of around $6 million. So, a 5% dip in May might seem significant, until you realize that, compared to January, NFT sales volume is up 293.24%. 

It’s also worth noting that not all NFT-related projects experienced the dip. Axie Infinity saw month-over-month growth of over 200% and sold almost $7 million in NFTs, in just a single week. Not to be outdone, Dark Country saw growth over the same time of 659% while R-Planet rose 141%. Each of the three enjoyed their best month ever in May.

Polygon popularity and price surge

As each month goes by and reports are generated, Polygon continues to stand out from the crowd, with numbers that reach higher than their peers. While the crypto industry crashed around them, Polygon enjoyed a bull run, thanks partially to its popularity in India and is now one of the world’s top-15 crypto tokens.

Polygon’s popularity comes from the advantages it holds over competitive networks as far as scalability, security, and user experience go. Polygon’s biggest appeal, however, might be the simple fact that it dramatically reduces transaction fees in crypto transfers. 

Polygon started the month at around $0.70 and ended strong, up almost 170% at $1.87. Polygon also hit an all-time high in May, reaching $2.44, on May 17. During the past year, the value of MATIC has skyrocketed by more than 11,000%.

This surge has brought a lot of new collaborators into the fold for Polygon, including Infosystems LTD, M-Setu, and InsureChain.

No team-up has been better for Polygon in May than that of Mark Cuban, who invested big in MATIC mid-month. That news alone sent the protocol’s native token through the roof, jumping 40%, in a day. Polygon experienced a total value locked growth to the tune of 1,102%, finishing May at around $5.7 billion.