The massive growth of bridge aggregators has indicated a possible wave of user migration from Ethereum to Polygon
Polygon Network has shown solid resilience in the difficult period of crypto assets plunging in value. According to its Q2 report, the Ethereum scaling platform witnessed steady growth in the number of network addresses and transaction volume despite the broader market selloff during the same period.
Known as a sidechain scaling solution for the Ethereum Network – often criticized for its high transaction fee due to traffic congestion – Polygon acts as a much cheaper alternative. Its average cost of transactions fell 49% to $0.018 QoQ, as shown in the Q2 report.
Meanwhile, the total unique addresses on the network amounted to 5.34 million, up 12% from Q1, as the total transaction volume reached $284 million, a slight increase of 4% compared to the previous quarter.
It’s worth noting that a key metric for blockchain protocols attempting to challenge or complement the Ethereum blockchain is the number of devs working within the ecosystems. For Polygon, the growth in Q2 was particularly impressive, with over 90k developers publishing their first contract.
4/ In the NFT space, @opensea saw 1.2M new NFT wallets come online #onPolygon in Q2, increasing the total unique active wallets by 47% to 1.5M.
New mints jumped 50% to 66.6M transactions. And while the total dollar value of NFT trades declined 64%, tx volume soared 47% to 122M.
— Polygon – MATIC 💜 (@0xPolygon) July 26, 2022
Polygon’s growth is well reflected in its DeFi protocols which tend to attract users discontented with high gas fees in Ethereum. As a result, bridge aggregators and decentralized exchanges benefited from the emerging wave of migration.
For instance, Bungee – an aggregator that bridges ERC-20 tokens from Ethereum to Polygon – became the fifth largest protocol on the network, with its transaction volume skyrocketing by 972% and its number of users increasing to 92K in the quarter.
Regarding the network’s expansion in NFTs, the total number of Polygon-based wallets on OpenSea increased by 47% to 1.51 million in Q2. In the meantime, newly minted NFTs jumped by 50% to 66.65 million. Among all the blockchain games developed on the blockchain, a community-owned NFT game, Aavegotchi, saw the most explosive growth in its users, surging eight times from Q1.
To boost its Web3 ambition, Polygon launched its Zero-Knowledge Ethereum Virtual Machine (Polygon zkEVM) last week. The new solution works with existing smart contracts, developer tools, and wallets without modifying or re-implementing codes while enhancing scalability and lowering costs without sacrificing security.
Jay Zhuang is a journalist and artist with a background in digital art curation. He started writing about cryptocurrency in 2020 and began contributing to DAOs in 2021. He can be reached on Twitter.
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