Polygon TVL Drops 20% as Polymarket Fever Cools

Many election traders on Polymarket promptly removed their funds from Polygon as soon as the election markets closed.

Over $340 million has been removed from the onchain prediction market Polymarket since the U.S. presidential election concluded, and almost 90% of that capital has already left the Polygon blockchain.

Polymarket’s total value locked (TVL), which has been on a parabolic uptrend in 2024, has dropped 64% from $512 million to $185 million in just 3 days. In the same timeframe, Polygon’s TVL is down 19% to $1.1 billion from $1.35 billion, rebounding slightly as token prices rise from its Nov. 6 low of $1.05 billion.

Despite the large amount of capital leaving Polygon, activity on the chain remains similar to pre-election levels at roughly 3 million daily transactions, according to DeFiLlama.

Polymarket is one of, if not the standout crypto native app in 2024, and is currently ranked the number one app for “Magazines and News” in the Apple app store.

However, Polygon’s POL token has not reaped the benefits of the newfound attention and is down 63% since the beginning of the year, despite all of Polymarket’s key metrics surging throughout the year.