Polygon [MATIC] poised to attain new heights; Here’s why

Polygon [MATIC] has attracted significant traction over the past few months and has managed to overshadow the Ethereum [ETH] network. In the latest development, Polygon has reportedly registered a whopping $188 million in overall net inflows and 423k daily active addresses count over the last seven days. This was observed by prominent cryptocurrency analyst Raphael who stated that key metrics such as Daily Active Users or Addresses [DAU], Transaction cost [Tx], Daily Bridged Users have noted interesting trends. In his Twitter post, the analyst stated,

MATIC saw ~$188mm net inflows & 423k daily active addresses last week DAU: 423k (-6.01%) Tx/day: 3.3mm (-15.75%) Rev/day: $42k (+20.62%) Cost/tx: $0.012 (+43.17%) Daily Bridged Users (net): +3,119 Weekly Value Bridged (net): $188mm Analysis (including bridge metrics)

What does Polygon’s metrics indicate?

In terms of the Daily Active Users [DAU] count, MATIC has clocked in an impressive increase of 116% over the period of 28 days. However, on a week-to-week basis, the charts depicted that the users have declined by 6%. That being said, the “new normal” has increased considerably as indicated in the above chart.

In order to delve deeper, the analyst also compared Polygon’s daily active address with the second largest crypto asset, Ethereum [ETH], and noticed that the former has comparatively performed better as depicted in the weekly figures with respect to ETH. Raphael stated,

Users as % of Ethereum:

Week 39: 99.2%

Week 40: 84.57%

Week 41: 83.14%

With respect to transaction count, the prominent analyst, however, added a note of caution by revealing that the increased gas fees induced a negative impact on the transaction as well as transaction costs. As gauged from the above chart, on-chain transactions witnessed a sharp decline of 15.75% in a span of a week.

Further on some monetization metrics, Polygon has substantially increased its revenues both in terms of USD and MATIC over the last week. The daily revenues looked promising. In terms of MATIC, the revenue figure was up by approximately 16% and now stood at $32k. On the other hand, with USD, the revenues increased by more than 20% over the same period of time and were found to be at $42.3k. The findings also stated that the uptick in the revenues is the result of rising transaction fees and the token’s price rise.

Polygon’s high-profile partnerships

The Polygon’s growth has been commendable. For the first time ever, the second-layer officially smashed past Binance Smart chain [BSC] in terms of total wallets while simultaneously surpassing the 100 million wallet mark and subsequently establishing a new ATH.

The growing demand and activity can be attributed to several high-profile partnerships of the ecosystem in recent times. Ernst & Young’s integration with Polygon protocol among others is one such example.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.