The little-known reason that propelled Polygon’s TVL to $3 billion

Total Value Locked (TVL) on Polygon surged over the past 24 hours as a surprising series of events occurred. However, after testing, this increase was due to just one of more than 200 protocols: Balancer.

Today, this decentralized exchange (DEX) will end voting on a very important proposal affecting the governance of the protocol.

Equalizer need some balance

On February 24th, a proposal to improve Balancer’s governance process was submitted. It aims to correct the assumption of improper support for the proposal of large BAL holders.

According to the proposal, going forward, the Protocol Board will make the final decision on whether the proposal is worthy and whether it should be adopted. However, the Board of Directors has no voting rights.

This proposal is likely to be adopted after the conclusion of today’s vote. Currently, the proposal has more than 39,000 votes, all 100% for the proposal.

The optimism about the proposal has led to a staggering increase in TVL on dApps (decentralized applications). Data from DeFi Llama shows TVL growing from $2.88 billion to $6.79 billion – a 135% increase in 24 hours.

Balancer is deployed on Polygon. Accordingly, this blockchain also saw the same situation with a 97% increased TVL.

Balancer’s TVL Raises $3 Billion | Source: DeFi Llama

In particular, this DEX on Polygon is preferred by retailers. As the on-chain data shows, the number of transactions under $100 has surpassed 2.27 million and transactions under $1,000 have hit the 2 million mark.

Larger pools enter trades ranging from $1,000 to $100,000 and accumulate just over $832,000.

mass distribution equalizer | Source: Dune

It’s also worth noting that Balancer isn’t exactly a perfect investment, with 87.33% of its 36.1,000 addresses suffering losses.

AmountsHey investment equalizer loss | Source: Intotheblock

Since its all-time high of $74.45 in May, the protocol’s BAL token is down 84% and is currently trading at $11.43. For many, this can be seen as an obstacle in attracting new investors. Nevertheless, new proposals and an increased TVL can lead to success.

price action by BAL | Source: TradingView

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