Polygon, an Ethereum scaling tool, saw wide swings in daily transactions and active addresses during the fourth quarter as users scrambled to move funds during the epic meltdown of Sam Bankman-Fried’s FTX crypto exchange. Also, the project rolled out new partnerships and initiatives, according to a new report from the blockchain analytics platform Nansen.
Polygon daily transactions ranged from 2 million to 3.7 million, while daily active addresses ranged from 350,000 to 1.7 million.
The number of daily transactions surged on Polygon in early November, when users attempted to yank out funds from the now-defunct FTX. Daily gas fees paid also peaked at the time, with the highest day at $570,000. The lowest point for daily gas fees paid was at $16,000 in early October.
Compared to Ethereum, Polygon’s daily transactions were almost twice as high and more volatile during the quarter, while daily gas paid was 40 to 100 times cheaper on Polygon.
Yi Jun Lee, the author of the report and a research analyst at Nansen, told CoinDesk that Polygon’s volatility in the fourth quarter was due to numerous events besides the FTX insolvency.
Non-fungible token (NFT) “launches, partnerships, can all lead to an increase in the number of transactions, not solely moving the native token,” Lee said.
The tremendous addition of daily addresses was partly due to the launch of Polygon’s zero-knowledge EVM public testnet.
Zero-knowledge (ZK) rollups is a technology that processes transactions in bundles and uses “proofs,” which are bite-size pieces of data that confirm transactions are “true” and haven’t been altered. The deployment of the Ethereum Virtual Machine (EVM) for Polygon’s ZK rollup means developers can move smart contracts into the Polygon environment from Ethereum without any hiccups.
The mainnet launch of Polygon’s zkEVM is scheduled for early 2023.
Also bringing more users into the Polygon ecosystem was the announcement to integrate the Binance USD (BUSD) stablecoin into the protocol.
As for what to look out for leading into the new quarter, Lee argues the zkEVM mainnet launch, NFT sales on the blockchain, as well as mainstream adoption, will lead to continued user growth for Polygon.
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