Polygon Outpaces Ethereum in Daily Transaction Fees Over the Weekend
Polygon’s growth, driven largely by the Polymarket prediction‑market platform and a surge in USDC activity, has led the Layer‑2 solution to record higher daily fees than Ethereum for the first time.
Summary
- Friday (Feb 14): Polygon generated roughly $407 k in transaction fees, more than twice Ethereum’s $212 k.
- Saturday (Feb 15): The gap narrowed but Polygon still led, posting about $303 k versus Ethereum’s $285 k.
- The surge is attributed to intense activity on Polymarket, a popular prediction‑market dApp that alone accounted for over $1 million in fees on Polygon during the past week.
- Stablecoin usage on Polygon also hit a new weekly high, with 28 million USDC transactions reported on Sunday.
These metrics represent the first instance where Polygon’s daily fee earnings have eclipsed those of Ethereum, marking a notable milestone for the scaling solution.
Details
Data compiled by analytics platform Token Terminal shows that Polygon’s daily fee revenue jumped dramatically over the weekend. On Friday, the network collected $407,100 in fees, while Ethereum’s fee intake stood at $211,700. By Saturday, Polygon’s fees fell to $303,000, still edging out Ethereum’s $285,000.
The spike is largely linked to the performance of Polymarket, a prediction‑market protocol that launched on Polygon in 2020. According to an X post by Matthias Seidl, co‑founder of the Ethereum analysis tool growthepie, Polymarket was the primary driver of the recent fee surge. Seidl’s chart indicated that the platform alone generated just over $1 million in fees on Polygon over the preceding seven days, dwarfing the next biggest dApp—Origin World, which contributed roughly $130 k.
Polygon’s own Twitter account highlighted the scale of activity on Polymarket, noting that a single Oscars‑category market attracted $15 million worth of wagers, with the network serving as the underlying blockchain. In parallel, Polygon has been expanding a “network of trustless agents” on its Layer‑2 to capitalize on prediction‑market opportunities.
Stablecoin transactions have also surged. Analyst petertherock (Polygon data analyst) reported that the network processed a record 28 million USDC transactions in a single week, reflecting growing demand for the Circle‑backed stablecoin on the platform. Polymarket relies on Polygon‑based USDC for settling bets, further intertwining stablecoin use with prediction‑market growth.
Analysis
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Layer‑2 Momentum: The fee reversal underscores the maturing ecosystem of Polygon’s Layer‑2 solution. By offering lower gas costs and faster finality, Polygon continues to attract high‑volume dApps, particularly those that benefit from cheap, frequent transactions such as prediction markets.
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Prediction‑Market Catalysis: Polymarket’s rapid adoption illustrates how niche applications can drive network-level metrics. The platform’s ability to generate sizable fee revenue demonstrates that targeted use‑cases, rather than broad DeFi or NFT activity, can be instrumental in scaling Layer‑2 adoption.
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Stablecoin Integration: The record USDC transaction volume signals that Polygon is increasingly becoming a hub for fiat‑pegged asset movement. This complements its role in prediction markets, where USDC is used for bet settlement, and could attract further financial‑layer applications.
- Implications for Ethereum: While Ethereum’s fee revenue remains substantial, the weekend data suggests that specific high‑throughput applications may gravitate toward cheaper alternatives. This could prompt Ethereum developers to accelerate scaling solutions (e.g., rollups) to retain fee‑driven activity.
Key Takeaways
- First Fee Overtake: Polygon has, for the first time, posted higher daily transaction fees than Ethereum over a consecutive two‑day period.
- Polymarket’s Influence: The prediction‑market platform is the dominant fee generator on Polygon, contributing over $1 million in a week.
- Stablecoin Surge: Polygon’s weekly USDC transaction volume hit a new high, reinforcing its role in fiat‑pegged asset flows.
- Layer‑2 Appeal: The data highlights the growing attractiveness of Layer‑2 solutions for applications that require frequent, low‑cost transactions.
- Future Outlook: Continued growth in niche dApps and stablecoin usage may further erode Ethereum’s fee dominance unless scaling upgrades are widely adopted.
The figures presented are based on publicly available analytics from Token Terminal and statements from community contributors on X. As always, readers should verify data independently before making investment decisions.
Source: https://cointelegraph.com/news/polygon-flips-ethereum-in-daily-transaction-fees?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
