Analysis

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

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Bitcoin Spot ETF Inflows Hit $1 Billion Led By BlackRock

Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…

2 minutes ago

Best Altcoins to Buy Today: Qubetics Rides 1000x Potential to Hit $2.6M, Ethereum Stays Rangebound, Tron USDT Transactions Hit $52B

Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…

2 hours ago

Trump Media Company Is Pushing New Venture For Crypto Service

With the platform facing a cracked whip, Trump Media company is expanding into new business…

3 hours ago

Crypto Advisory Council Now A White House Position Attracting Leaders

Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…

4 hours ago

Analyst Sounds Major Breakout Alert Amid Shiba Inu, WallitIQ, And Dogecoin Price Recoveries

Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…

4 hours ago

SEC Chair Gary Gensler Will Lose Power From January 20

SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…

4 hours ago

This website uses cookies.