There is a lot of competition among different blockchain ecosystems. Such competition benefits the suers seeking out cheaper and more efficient alternatives. Polygon may overtake Ethereum in total transactions fairly soon, primarily thanks to strong daily transaction volumes.
Polygon is Climbing The Rankings
As a layer two solution on the Ethereum blockchain, Polygon provides a solution many traders require. In addition, it is far more efficient and cheaper to use than Ethereum, which often suffers from very high transaction costs and delays. Polygon is also a growing force in the DeFi and DApp ecosystem for these same reasons. Developers and users need access to high throughput at fractional costs.
Because of the benefits Polygon brings to the table, more and more applications and protocols support this blockchain. In addition, it is entirely EVM compatible and requires no drastic code changes for developers. Tapping into the lower fees and better throughput is a painstaking process and can help unlock additional liquidity and users. The current daily transaction volume confirms Polygon is on the right path.
Per Dune Analytics, the Polygon network notes an average of nearly 5 million daily transactions. That is a substantial amount, although it appears the momentum has been slowing down in recent days. Of course, that isn’t abnormal for a blockchain, as no network remains at high throughput 24/7 yet. Even so, the current “dip” still allows Polygon to process more transactions than Ethereum, which is rather intriguing.
So far, Polygon’s network has processed nearly 957 million transactions. The 1 billion milestone will be reached in a few days, putting the network in a solid position. Moreover, that would make Polygon capable of overtaking Ethereum, which has 1.317 billion transactions. However, there is an impressive gap between these two networks, which will cause a “flippening” of sorts. If and when that shift will occur remains challenging to predict. It may even happen before the end of 2021.
Ethereum TX Vol Remains Solid
One can argue that Ethereum is still in a good place for transaction volume. The network sustains an average of over 1 million transactions per day. That is a fair amount, although it also shows the network’s limitations. When ETH 2.0 comes around and sharing goes live, these metrics will look very different. However, it seems as if surpassing 1.5 million daily transactions may be a bridge too far for the current version of Ethereum.
Moreover, Polygon has over five times the monthly transaction volume of Ethereum. That is a strong indicator as to where the metrics will head shortly. Ethereum can maintain its lead, although ETH 2.0 would have to go live very soon for that to happen. Unfortunately, that seems like an unlikely outcome. Even so, it creates healthy competition and innovation that will benefit everyone.