Polygon Hits New All-Time High with Millions in Assets, Lower Fees, and Rapidly Growing User Base
- On May 25, the single-day transaction volumes for Polygon’s zkEVM Mainnet Beta touched an all-time high of 25k.
- The Polygon zkEVM Mainnet Beta stands out as one of the cheapest Layer-2 roll-ups, offering reduced fees through gas optimizations and increased network activity.
Ethereum’s Layer-2 scalability solution Polygon continues to be at the forefront of new development initiatives. As we know, Polygon launched its zkEVM Beta a few months back. It is the first zero-knowledge scaling solution that is compatible with the Ethereum Virtual Machine and integrates developer tools and smart contracts.
Polygon Labs shared the metrics of its zkEVM Mainnet Beta for the month of May while reflecting the network’s steady growth. During this month, the single-day transaction volume for the zkEVM reached an all-time high. Just on May 25, the Polygon zkEVM Mainnet Beta processed a total of 25k transactions.
In May, single-day transaction volume on Polygon #zkEVM reached all-time highs
Steady TVL growth
May metrics for Polygon zkEVM show that activity followed liquidity. pic.twitter.com/s0XIm4EZZZ
— Polygon (Labs) (@0xPolygonLabs) May 30, 2023
Steady TVL growthOn the other hand, the total assets on the Polygon blockchain network are now over $18 million while the assets linked to the DeFi protocols have passed $10 million. Also, over the last two weeks, gas optimizations have drastically reduced the cost of transacting on the network. For e.g. three weeks ago, a DeFi user had paid a total of $8.55 to compound a position. The same transaction last week cost just $1.21.
As per data provided by L2 fees, gas optimizations and the surge in network activity have made the Polygon zkEVM Mainnet Beta among the cheapest Layer-2 roll-ups. The transaction fees on Polygon zkEVM serve multiple purposes, including covering the expenses associated with data availability and posting proofs to Ethereum. With every transaction processed, Polygon zkEVM publishes state data, and the fees contribute to the cost of running the server responsible for generating proofs.
Polygon Labs said that in the following weeks, optimizations on the Polygon zkEVM will reduce fees by 20%.
In the next few weeks, optimizations to Polygon zkEVM are expected to reduce fees by ~20%. This is without any compression.
But there are many ways users can optimize for fees today. Follow the thread for tips and tools on:
– On-chain transactions
– Bridging transactions— Polygon (Labs) (@0xPolygonLabs) May 22, 2023
Addressing Liquidity Concerns
Strong network activity is usually followed by strong liquidity, and the same happened in the case of the Polygon zkEVM Beta testnet. In the period between April 24 to May 29, assets bridged to the Polygon zkEVM network grew by 7x to over $18 million. As per data on DeFiLlama, the liquidity at the initial stage came slow and then all at once.
For e.g. in the period between May 15 and May 17, $5 million worth of new assets were bridged to the Polygon zkEVM Beta testnet. Increased activity on rollups leads to lower fees, in contrast to Ethereum. As activity rises, rollup fees decrease. This is due to the cost of proof generation being spread across multiple transactions within a batch. With more transactions, a larger number of users share the expense of generating proofs, resulting in reduced fees.
During the period between April 25 to May 25, unique active wallets also grew by 54%, following the new assets bridged on May 15. As the Polygon zkEVM Mainnet Beta mainnet continues to grow steadily, Polygon Labs will share the roadmap for data compression and EIP – 4844 in the coming months.
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