Try Quests to earn cryptoTransaction Fees on the Polygon Network
In this dashboard, we investigate the current transaction fees for the Polygon Network since July 1st, 2022. The Polygon Network gained early traction to the platform due to its cheap prices to transact on the network compared to Ethereum. Ethereum transactions and fees will also be observed against the polygon network to understand correlations and differences between the two networks. Analysis if not labeled are assumed to be in the native token of Matic.
By J.Hackworth
Transaction Fees Per Day
As of writing 7/8, Over 400K+ Matic has gone to fees. About 50K Matic goes to fees each day. Translating this to $USD we see that the fees generate about $200k and $20k-$30k per day. If the current activity for Polygon would remain, there would be about fees $7 -$11M in fees for the Polygon Network. Considering that over 2M+ Transactions occur each day this shows the power of the Polygon Network to keep gas low, but in terms of a profitability standpoint fee generation is relatively low for the current market cap of Matic. In the future, Polygon will need to figure out a way to generate more revenue or transaction fees if it wants to become profitable
In terms of percentiles, we see that Average Transaction is closer to the 90th percentile vs the 10th percentile. The average fee has gone but depends on the number of transactions and more importantly price. There is an inverse correlation between the price of polygon and the number of transactions during this period
So now that we looked at Polygon, how does it compare to the king Ethereum? Here we will be looking at the correlations between different factors of the Ethereum and Polygon Network
What’s interesting is that since July 1st, there has been a STRONG correlation between the price of ETH and MATIC. However, there is not a strong correlation between the average transaction on Ethereum and Polygon. While historically ETH has been quite expensive, the average transaction right now costs about $2.2 dollars In terms of fees per day we see a tracking in terms of the ups and downs of fees per day between the two networks. With a .659 Correlation between Ethereum to Polygon Transactions per Day
What’s interesting about Ethereum is that while it may not have as many transactions (a little less than a third) as Polygon, it has a ton more in fee generation with about 100x more in fees. This is due to higher gas costs, but the one thing about Ethereum is that as a network it is profitable. I like to think of Ethereum as Manhanttan which is expensive, but the heart of the country where as Polygon might be like a Midwestern United States city that offers a lot of functionality, lower costs, and value to the overall ecosystem