Polygon’s active users jumped an incredible 61.36% week over week. With six consecutive weeks of growth, DAUs have multiplied 2.6x in just 28 days.
Active users are growing at an accelerating pace. Typically larger scale means lower growth rates. However, over the last month Polygon’s growth rates have increased steadily, from a low of +0.73% to last week’s +61.36%.
This growth has led to Polygon helping more people access web3 than Ethereum itself. Since October 1st, Polygon has had higher daily average users relative to Ethereum. On a weekly basis, Polygon had 99.2% of Ethereum’s average DAU.
Likewise, Polygon has made significant strides relative to Binance Smart Chain. We see that last week, Polygon jumped to 45.48% of BSC’s active users. Below is a chart showing how Polygon is growing faster than both of these chains.
Increased cohort sizes continue to be a primary factor in user growth.
Last week saw 361.4k new addresses interact with the network. This was by far the largest cohort to date, increasing ~60% week over week.
In addition to cohort size, we are seeing much better retention over the last few weeks, particular in the last cohort.
Since cohort 30 (end of July), no cohort has been in top 50% quartile of retention. Until last week, which boasted a 36.71% week 1 retention rate.
Despite the user growth, transactions on Polygon PoS actually declined slightly (-4.26%) to 6.26mm.
While this isn’t what we would typically expect, we do see that transactions per user remain elevated, even compared to other low-fee chains. Currently, transaction/address sits at 13.48, much higher than the 5-10 range Binance Smart Chain experiences for example.
Over the medium term, we would expect transaction per address to continue to decline, but overall transactions to increase.
Part 2: Polygon PoS monetization growth
Network revenues seesawed back down this week. After increasing 26.61% last week, revenues are down -32.57% this week. This continues the pattern of volatility in network fees we’ve seen over the last several months.
The primary cause was a decline in the average cost per transaction. Transaction costs fell -29.57%, reaching $0.00418. This is the lowest transaction costs since last July and is a fantastic sign as Polygon PoS continues to scale while maintaining transaction costs of well under a cent.
The biggest catalyst for user growth is use cases outside of DeFi. Arc8 and the continued success of gaming titles on Polygon such as Neon District and Revv Racing are the biggest week-over-week contributors.
Another major catalyst are NFT adoption on Polygon.
We put together an in-depth thread on OpenSea’s success on Polygon. There we describe how trader activity and artists are changing behavior, as well as share some incredible adoption stats such as having 272k active traders in September alone. You can find the full thread here.
Polygon is the leading platform for Ethereum scaling and infrastructure development. Its growing suite of products offers developers easy access to all major scaling and infrastructure solutions: L2 solutions (ZK Rollups and Optimistic Rollups), sidechains, hybrid solutions, stand-alone and enterprise chains, data availability solutions, and more. Polygon’s scaling solutions have seen widespread adoption with 700+ applications hosted, ~600M total transactions processed, ~60M unique user addresses, and $5B+ in assets secured.
If you're an Ethereum Developer, you're already a Polygon developer! Leverage Polygon’s fast and secure txns for your Dapp, get started here.
EY, a global professional services and technology firm, is collaborating with Polygon on building and implementing scaling and enterprise solutions for the Ethereum ecosystem. As part of this collaboration, EY and Polygon will work on Polygon Nightfall, a public, privacy-focused Rollup. In addition to this, EY will offer its other flagship blockchain products on Polygon […]
The Protocol team was recently established at Coinbase to work on scaling Ethereum through integration with L2 and other ETH scaling solutions. The Coinbase team plans to integrate Polygon PoS as their first scaling solution for Coinbase. The Coinbase Protocol team is an experienced group of engineers at Coinbase focused on contributing to scaling blockchains and […]
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Polygon is the biggest crypto project to be born out of India and is today one of the most adopted blockchains in the world. The project is very popular with developers and users alike, with 1200+ Dapps deployed and the highest daily active user count in the web3verse.. To further promote Web3 technology and culture […]
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We have covered the pace of growth of the Polygon ecosystem with blogs such as OpenSea, and our Polygon User in Numbers. Today, we will look at the overall growth of the Polygon developer ecosystem. Alchemy, a leading blockchain developer platform, is able to take a birdseye view on teams building on a number of […]