Yet, 97% of NFT and Gaming Transactions Are On Polygon
On November 11, 2021, Consensys published The Web3 Report. Over the past few months, the entire Web3 ecosystem has been evolving and developing new economic patterns. The key points of the latest Web3 report are available below:
- Decentralized Finance (DeFi) Economy:
- There has been a 321% rise of the Ethereum addresses Interacting with Defi Protocols this year.
- Stablecoins: Here is an analysis of how the total value of stablecoins supply has doubled since January 1st of this year from nearly 20 billion to more than 40 billion.
- Borrowing and lending in DeFi saw significant growth in terms of loans outstanding in Q3, reaching new all-time highs in debt on September 6th, with approximately $24.7 billion worth of debt outstanding.
- DeFi Protocol revenue: popular protocols like Uniswap, PancakeSwap, and SushiSwap are now generating well over $100 million in annualized revenue.
- DeFi Governance: Governance drives changes in most of the major DeFi protocols. Token holders vote on proposals, which range from propositions on how a protocol should allocate its treasury funds, to more specific details like changing a collateral factor for an asset.
- Non-Fungible Tokens (NFTs): 2021 has been the year of the NFT with sales totaling $10.7 billion for Q3 2021 and Snoop Dogg claiming to be the renowned NFT collector Cozomo de' Medici. We deep dive into the entire ecosystem, from primary and secondary sales to the Financialization of NFTs, as well as the emerging Profile Picture NFTs movement.
- 97% of NFT and gaming transactions are already happening on Polygon
James Beck, one of the lead authors of the report and Director of Communications and Content at ConsenSys had this to say when asked about the most surprising thing which he discovered during the research.
“We were surprised by how many people bought NFTs. While the Ethereum Mainnet has been popular for high-value NFTs, a study of the MetaMask browser extension reveals that over 97% of NFT and gaming transactions are already happening on an energy-efficient blockchain like Polygon. These blockchains are being used to scale the blockchain ecosystem in an energy-efficient way.”
- DeFi for Crypto Institutions: In response to the rising interest of organizations to increase exposure to DeFi, we explore the five factors for them to consider before engaging in the ecosystem.
- Metaverse: We dive into some of the bigger projects in the Metaverse space such as the well-known Axie Infinity that generated more than $720M dollars through NFT trading, in Q3 alone.
- Web3 scalability: Of all crypto assets locked in decentralized finance, Ethereum represents 77% of the total locked value. To keep on growing, Web3 needs Ethereum to scale and we identify the dimensions tied to DeFi user needs for scaling.
- Web3 security: While Q3 witnessed two of the biggest hacks in the history of blockchain, we explore the security strategy to ensure that smart contracts are continuously well protected against vulnerabilities.
