Polygon ecosystem, which brings the best of Ethereum and sovereign blockchains to users, saw an exponential growth this year. The high volatility and the rising fees on the Ethereum blockchain discouraged many users from using it and they instead chose Polygon. Meanwhile, its token MATIC has reflected the growth of the ecosystem with an appreciation in its price.
The crypto market is going through a recovery period, but MATIC’s price has managed to enter a consolidation phase, thus avoiding high loss. This offered a chance to users to better interact with the platform. The increased interaction by users was reflected in the daily active user [DAU] growth of Polygon.
Data from analyst Raphael on Our Network noted that the DAU spiked by 5.91% week over week. Additionally, the network reported a third consecutive week with daily active addresses remaining over 100k daily. This suggested that when the price gained more stability, the network welcomes a consistent flow of users.
However, this trend was not true for all altcoins, even the ones withstanding violent price actions like Binance Coin [BNB] and Ethereum. In fact, Polygon has 20.38% of Ethereum’s DAU and 20.09% of Binance Smart Chain’s, which highlighted users’ preference, at the given time.
Although the number of users weekly increased by ~6% and the transactions surged by almost 2.11%, the cost per transaction decreased by a substantial -12.52%. This was the first weekly revenue drop since 31st May, with average daily revenues of 11,325 MATIC [$12,395].
The above metrics indicated that Polygon’s MATIC token has remained on the growth curve and may continue to do so. Although in terms of magnitude, Polygon was much smaller than Ethereum and Binance Smart Chain, it was generating 0.28% of ETH and 1.12% of BSC revenues.
Meanwhile, the digital asset MATIC was currently trading at $1.03, with a market capitalization of $6.57 billion.