Polygon ended the past three months as the leading chain in terms of new inflows. The success of Polymarket is one of the main drivers for Polygon deposits. Over $407M moved to Polygon based on total net flows for the past three months. Polygon, the host of Polymarket’s trading, led all other chains with a significant advantage. The chain saw $1.7M in gross deposits, and retained a significant part as Polymarket activity accelerated. For the same period, Solana had much smaller netflows, while Ethereum saw a net outflow of close to $800M. Polygon saw the biggest inflows among L1 and L2 chains, driven by Polymarket and the chain’s role as a payment venue. | Source: Artemis Polygon remains a widely used chain despite its legacy status. The Polygon proof-of-stake chain is the main venue for USDC transfers, used in Polymarket trading. The active inflows followed the expansion of users and fees on the network, as traders continued to engage with Polygon’s trading pairs. Polygon passes other L2 with organic activity Polygon is one of the few L2 chains to revive its organic activity, passing other chains with much more developed DeFi apps. The chain still carries only $1.15B in total value locked, and has not returned to the activity of 2021. Based on L2Beat, Polygon PoS also carries $3.63B in total secured value. The chain still has robust activity through Quickswap, with Polymarket coming in second among the most liquid apps. The remaining Polygon activity comes from legacy apps and versions of leading DeFi hubs like Aave, Uniswap, PancakeSwap, and others. Polygon also keeps posting weekly records for active addresses . Recently, Polygon displaced Arbitrum as the leading recipient of inflows. On a one-month basis, Polygon is just behind Hyperliquid for new inflows, but the three-month time frame shows Polygon drew in more significant netflows. One of the reasons for the inflows is the structure of Polygon’s markets. Hyperliquid, the runner-up, still has significant withdrawals, while Polymarket is constantly expanding its pool of traders. Polygon switches to payment network Polygon remains one of the chains with the highest USDC transfer volume. Polygon still works on its Open Money Stack, becoming a venue for payment apps. The chain recently acquired Coinme and Sequence to build an on-chain transaction network. The project aims to build fiat on-ramps and offer up to 50,000 fiat-to-crypto locations in the USA. The network’s growth is only partially dependent on its main prediction market, as the chain actively seeks new use cases. Polymarket focuses on P2P payments, and may carry the x402 standard tokens. Recently, Polygon onboarded Toku, which will use the chain for USDC payroll distributions. Users can also spin up private on-chain payment gateways with USDC, USDT, or POL. Polygon aims to reinvent itself, also shedding up to 30% of its staff to pivot into payments. Stablecoin payments are still growing despite the overall crypto slowdown. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
