Polygon Network has shown strong resilience in the difficult period of declining crypto asset values. According to its Q2 report, the Ethereum scaling platform has seen steady growth in network addresses and transaction volume despite the market selling off over the same period.
Regular growth in winter
Known as a sidechain scaling solution for the Ethereum network – often criticized for its high transaction fees due to traffic congestion – Polygon acts as a much cheaper alternative. Its average transaction cost fell 49% to $0.018 QoQ, as shown in the Q2 report.
Meanwhile, the total number of unique addresses on the network stood at 5.34 million, up 12% from the first quarter, with total transaction volume hitting $284 million, a slight 4% increase over the previous quarter.
It should be noted that a key metric for blockchain protocols attempting to challenge or complement the Ethereum blockchain is the number of developers working in ecosystems. For Polygon, growth in the second quarter was particularly impressive, with more than 90,000 developers editing their first contract.
New currencies jumped 50% to 66.6 million transactions. And while the total dollar value of NFT transactions fell 64%, tx volume soared 47% to 122M.
— Polygon – MATIC 💜 (@0xPolygon) July 26, 2022
DeFi and NFT
Polygon’s growth is well reflected in its DeFi protocols which tend to attract users unhappy with the high gas fees in Ethereum. As a result, bridge aggregators and decentralized exchanges have benefited from the emerging wave of migration.
For example, Bungee – an aggregator that links Ethereum’s ERC-20 tokens to Polygon – has become the fifth largest protocol on the network, with its transaction volume skyrocketing 972% and its number of users rising to 92,000 during the quarter.
In terms of network expansion in NFTs, the total number of Polygon-based wallets on OpenSea grew by 47% to 1.51 million in Q2. In the meantime, newly created NFTs jumped 50% to 66.65 million. Of all the blockchain games developed on the blockchain, a community-owned NFT game, Aavegotchi, had the most explosive growth in its users, eight times from the first quarter.
To boost its Web3 ambition, Polygon last week launched its Ethereum Zero-Knowledge Virtual Machine (Polygon zkEVM). The new solution works with existing smart contracts, developer tools and wallets without modifying or reimplementing codes while improving scalability and reducing costs without sacrificing security.
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