cryptoslate.com
The total value locked (TVL) in Polygon’s ($POL) DeFi ecosystem is up nearly 43% since the start of this year.
According to DefiLlama data, the network recorded $864 million in TVL on Jan. 1, and added roughly $400 million in the following months to hit $1.23 billion as of Aug. 18.
Furthermore, the $POL price reflected the TVL growth in the past 30 days, rising above the sector’s average.
Growth driven by traditional protocols
In the past 30 days, Polygon’s TVL increased 7% and reached its highest level since mid-December. The network’s flagship DEX, QuickSwap, and the prediction market Polymarket were the two main drivers behind the $80 million increase.
QuickSwap registered approximately $52 million in TVL inflows in the past 30 months, growing 13.4% in the period. The increase marked the first time QuickSwap has surpassed $440 million in total deposits since May 2022.
Furthermore, Polymarket drew around $28 million in bettors’ money in its 30.2% growth registered in the past 30 days.
Notably, there is potential for more TVL growth. Data from Artemis shows $123 million in netflows directed to Polygon in the past 30 days. The movement suggests that funds are moving on the blockchain that could still be allocated to decentralized applications.
$POL outperforms peers
$POL’s price increased 6.6% in the past 30 days. Although the number is not a typical two-digit run seen in tokens with small market caps, it was enough for $POL to outshine its peers in the sector.
Artemis groups tokens such as $POL, Solana, Sui, and other smart contract-focused blockchains in the “Smart Contract Platform” category. Among the 46 tokens tracked in this category, the average weighted performance was 4.5% in the past 30 days.
As a result, $POL’s performance stands nearly 50% above the sector’s monthly average gain. Additionally, considering the 22 sectors tracked by Artemis, together with Bitcoin and Ethereum, the average performance was less than 0.5%.
Despite the rough price action $POL experienced since 2024, the past 30 days were relatively good enough, likely fueled by on-chain action.