Polygon is a decentralized scaling platform on Ethereum that enables building user-friendly protocols or applications with low transaction fees in a highly secure environment. Polygon played a major role in solving the scalability problems of blockchain technology. However, Polygon is not only a major player in decentralized finance, but is also among the largest NFT blockchains by revenue volume.

Due to the current decline in general interest in dApps on the Polygon blockchain and cryptocurrencies, Polygon’s TVL reached new lows in recent days. At the beginning of the year, the platform’s TVL was $5.44 billion and, as of May 29, has fallen to around $2.55 billion. Accordingly, the Layer 2 scaling solution lost about 53% of its Total Value Locked since the beginning of the year.

In addition to Polygon, many others suffered bitter losses, as the open-source liquidity protocol Aave also fell by about 41% last month. At the same time, decentralized exchanges Quickswap and Sushiswap also lost more than 41% and 44% of their respective TVLs. But that’s not all, other dApps that were significantly involved in the collapse also include Arrakis Finance, Balancer, Klima DAO, QiDao, Stargate, Beefy Finance, Meshswap, and Uniswap.

Despite the drop of over $2 billion in TVL, Polygon continues to lead ahead of Cronos, Fantom, Waves, EOS, Near, Algarond, Bitcoin, Terra, and Cardano.