Polygon Flips Ethereum on Active User Addresses
Increased network usage often translates into higher demand for the native token.
Active user participation in Polygon explodes, giving positive cues to its native cryptocurrency MATIC.
- Polygon’s count of unique daily addresses active either as sender or receiver rose to a record high of 566,516 on Saturday, surpassing Ethereum for the first time, according to data provided by polygonscan. Ethereum’s tally stood at 527,158 on Oct. 2.
- The number of active addresses on Polygon has grown by 168% in the past 30 days, while Ethereum’s count has gone up by a meager 0.6%, data from etherscan shows.
- Non-fungible tokens (NFT) adoption and gaming have fueled the growth in Polygon’s user base, according to Spencer Noon, an investor in Variant, a cryptocurrency venture capital fund.
- “Since July, traders on Polygon OpenSea [the NFT marketplace] have multiplied 45.5x, and NFTs sold by 17.5x,” Spencer said in the Network report published Oct. 2.
- “Second, gaming is taking off. Arc8 is one example, achieving 104K DAU [daily active users] days after launch,” Spencer added.
- Increased network usage often translates into higher demand for the native token and an increase in its price, Chainalysis’s Philip Gradwell told CoinDesk.
- However, the spike in active addresses has yet to give Polygon’s MATIC token a meaningful lift. While the token has risen 12% to $1.27 in the first four days of October, it is still down considerably from September’s high of $1.80.
- Polygon facilitates faster and cheaper transactions by running sidechains, or tangential networks, alongside the main Ethereum blockchain.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.