Introduction

Polygon, formerly known as the Matic Network, is a scaling solution that aims at providing an Ethereum alternative with a fast and low fee transactions.

Low transaction fee is an important factor which makes a stable network appealing and promising for users.

This dashboard investigates how is the performance of polygon in terms of transaction fee.

Transaction fee is the source of income for blockchains. The graph below shows the daily transaction fee generated on Polygon. We can see that, during the past week, daily transaction fee ranged between 39K and 69K MATIC.

Average transaction fee

The graph below shows the daily average transaction fee accumulated on Polygon. We can see that July first saw the highest average transaction fee and July 7th the lowest average transaction fee.

The average transaction fee is between 0.024 and 0.016 which is really low compared to Ethereum.

The low transaction fee directly decreases the income, however, it may indirectly increases the income through encouraging users to be more involved in the blockchain which lead to higher volume of transactions.

The relationship between transaction fee and number of transactions worth studying.

This graph shows the how average transaction fee correlates with the number of transactions on Polygon.

We can see a correlation between the two variables. Which shows that on Polygon the lower tx fee does not lead to higher transactions. It is more likely that the higher transactions causes the higher average fee.

Users on Polygon has paid about 410K MATIC since July 1st 2022. The table below lists the top 100 wallet addresses generated most transaction fees since July 1st.

Matic price was volatile in the past months. The graph below shows how average transaction fee in USD has changed over time.

Polygon vs Ethereum

Polygon was invented as a solution to tackle the crucial weakness of Ethereum namely the high transaction fees. Therefore, we should see Polygon as an alternative to Ethereum and compare them together. The graph below shows how transaction fees on Polygon and Ethereum have changed over time.

To increase the sample size to be able to infer a conclusion on correlation between average tx fee on Polygon and Ethereum the graph below derived from hourly average of transaction fees.

We can see the relationship between hourly average transaction fee of Ethereum vs Polygon on their own native token and in USD value.

We can see that there is a correlation between the two variables in both cases. However, MATIC vs ETH is more converged than USD value of both. It implies that the exchange rate of MATIC/ETH explains the diverging the average price of the two blockchains.

Conclusion

The data shows that transaction fee on Polygon is significantly lower than transaction fee on Ethereum.

Although the fee is low, due to the high number of transactions on Polygon, the transaction fee generated is noticeable.

The lower price of MATIC does not lead to the higher number of transactions as correlation analysis shows.

In general there us a correlation between the average transaction fee on ETH and Polygon. However, this correlation is less significant in the higher transaction fees. Moreover, the variation in the exchange rate of ETH/Polygon cases the divergence of average prices.