DeFi stumbles despite advances in scaling ETH
More and more scaling management for Ethereum want to secure part of the market for DeFi. In addition to MATIC, other crypto currencies in particular have attracted attention in the past few days - which projects are using the scaling?
The DeFi market had to bleed again in the past few days. Compared to the previous week, TVL dropped from $115 billion to $ almost 105 billion at the time of going to press. This means that the capital managed by DeFi has shrunk 7.80 % in the last seven days.
The Ethereum scaling management has been able to grow continuously in the last few weeks and this was also reflected in the strong price growth of MATIC. In addition, DeFi heavyweights rely on the scaling from Polygon. This allowed TVL to jump from under $ 4 billion to $ 6 billion in the past 30 days. But despite the prominent supporter, Polygon is not yet great. After the ETH scaling team announced a new SDK developer kit on May 26th, a malfunction occurred a short time later. The Matic, which enables tokens to be transferred from the blockchain to the sidechain, was impassable for a short time. As a result, Polygon co-founder made it clear on Twitter that the solution was a software bug that was quickly fixed with a hot fix.
Another ETH Scaling Enters The DeFi
Arbitrum is another scaling that could shake up the DeFi space in the next few months. In contrast to Polygon, the scaling does not rely on sidechains, but on so-called rollups. On May 28th, Arbitrum announced that it had opened its mainnet to developers. This means that developers on the Arbitrum can now use the scaling.
Arbitrum appeared to appear overnight, but the plan is already enjoying great trend in the UniSwap. An overwhelming majority of UNI owners voted in a governace decision that the exchange should integrate Arbitrum into its V3. In response to the vote, UniSwap inventor also expressed his satisfaction on social media and announced that work was already being carried out on Arbitrum into the V3 regulation.
The contents of this article are for informational purposes only and are not investment advice.