Introduction

Polygon, formerly known as the Matic Network, is a scaling solution that aims to provide multiple tools to improve the speed and reduce the cost and complexities of transactions on blockchain networks.

How does the Polygon network work?

The Polygon platform, powered by the MATIC token, was launched to connect and grow Ethereum-compatible projects and blockchains. MATIC tokens are used to govern and secure the Polygon network and pay transaction fees. Polygon uses a modified proof-of-stake consensus mechanism to efficiently operate the platform

Approach

in this dashboard the following metrics had been Analyzed

• share of daily transactions - per sector
• cumulative daily number of transactions
• Daily user count per sector
• cumulative user count per sector
• Daily user count share by type (New comers or others)
• Popular first transactions
• Time difference between first and second transactions on Polygon by user count
• daily transaction status (Failed or succeeded)
• cumulative transaction failure in sectors
• daily and total failure rate by sectors
• top 10 users with most of tx-failure
• TPS
• total generated fees share by sector
• Fee Per Tx comparison
• Daily Polygon and ETH fees comparison

note : Polygon data is available on FlipsideCrypto since 2022-06-15

looking at the charts, Layer2 sector has the most of tx count and user share among in Polygon users .Dex sector ia ranked 2nd , and looking at the cumulative chart, the main competition is between Layer2 and Dex sectors.

A gereat jump can be seen on June 26st and after that date, the growth rate for Layer2 became more exponential.

looking at the Daily user count share by type, on June 6th, 62% of uses which made a transaction were new comers .

The Popular first transactions was Bridging (using Layer2 Sector) with 57.2% of all

Time difference between first and second transactions on Polygon by user count chart also shows that, 71% of second transactions made in the first day and 15.2% made between 1 day to week

Looking at transaction status charts, over 90% of transactions on Polygon Network was successful.

Dex sector has got the majority of failed transactions with over 50% of all

Failure rate on Dex sector was 5.6%, while the token sector shows a 7.5% of faiure rate

In terms of Fee generation, Dex and Dapp sectors have got the majority of fee share by 48% and 21% respectively.

defi sector also got the most of Fee per Tx.

it is evident that both ethereum and Polygon daily fees change over time. This could be due to either increasing transaction volume or increase in transaction fees or both.

However, it remains that Polygon and ethereum fees follow the same trajectory, indicating some form of correlation. Moreover, we do not see any huge diversion.

Since Polygon is an L2 (second layer) of Ethereum, it is reasonable to lean towards the theory that increasing transaction volumes on Polygon, which are eventually settled on Ethereum are responsible for the correlation.