Crypto industry data and insights provider DappRadar notes that Dapp users prefer to transact on Polygon’s scaling solution rather than on the Ethereum network itself.
The scalability and economy it offers Polygon, a solution developed to scale Ethereum, is attracting a larger number of investors and users, who currently prefer to use this solution over interacting from the Ethereum mainnet. The reason behind this is that on Ethereum the current fees that users have to pay are too expensive, which makes it difficult for some users who cannot afford the high gas costs to enter.
On Polygon, users can make transactions at high speed and at low costs, which encourages many to choose this option over Ethereum. DappRadar, one of the best-known data and information providers in the crypto industry, indicated in a report recent that SushiSwap activity on Polygon has seen huge growth, which even exceeds the activity of this protocol in the blockchain of Ethereum in the last week.
According to the data, in the last 7 days Sushiswap on Polygon has seen over 20.000 unique active wallets interact with its smart contracts, while on Ethereum it has seen the interaction of some 18.700 unique active wallets.
While the number of interactions on Ethereum is by no means negligible, the fact that more interaction is occurring on Polygon shows that users, traders and investors are looking for more efficient and cost-effective solutions when making their transactions, DappRadar said.
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A small difference today, a big problem tomorrow
The data provider says that while the difference between unique active wallets interacting on SushiSwap on Polygon vs SushiSwap on Ethereum is still small, this could become a big problem for the second-largest blockchain in the industry, which could lose the interest of users and investors due to its high transaction costs.
“A small difference today, but one that could develop significantly as users grow tired of high gas fees (on Ethereum).”
However, DappRadar also points out that one of the most important points, which goes beyond the number of interactions that occur on the network, is the value that flows through the transactions.
More than $3.000 billion in Ethereum
In the case of Polygon, users are moving around $125 million through SushiSwap contracts, while on Ethereum the value moved exceeds that of Polygon by more than 20 times, with more than $3.000 billion moving through the protocol's contracts. DeFi.
The big difference in value may be related to larger investors and traders who prefer to stick to Ethereum, a blockchain that despite high transaction costs maintains a high reputation and a high level of security; while investors with smaller wallets are those who are looking for cheaper solutions to carry out low-value transactions. However, it should be noted that Polygon also offers a high level of security and trust for its users.
Source: DappRadar
In the chart, DappRadar indicates that SushiSwap activity on Polygon began to increase significantly on May 24, when cryptocurrencies saw a significant drop in value that led them to hit one of their lowest points seen this year. DappRadar analysts explain that this change of direction is perhaps due to investors “desperately trying to rebalance their wallets while avoiding rising gas fees”.
At the time of reporting, a simple SushiSwap transaction on Ethereum cost $30, while on Polygon the same transaction did not exceed $1.
Polygon, a growing solution
In addition to displaying data from SushiSwap, DappRadar analyzed metrics from ParaSwap, a liquidity aggregator DEX very practical and versatile. According to the dataParaSwap on Polygon has also seen a high level of growth compared to its versions on other blockchains such as Ethereum.
In this case, ParaSwap's data, both in terms of the number of unique active wallets and the volume of money, far exceeds that of Ethereum.
Last Tuesday, ParaSwap on Polygon recorded over 10.640 transactions, generating over $1.500 billion in trading volume. On Ethereum, the platform recorded just 757 transactions on the same day with a volume of $90 million.
ParaSwap activity on other blockchains that boast a high level of scalability, such as BSC, was also quite low compared to Polygon, DappRadar noted. It also noted that over the past 30 days, ParaSwap has seen a 425% growth in the number of active users, with over 23.310 unique wallets registered.
MATIC, growth of 4.800% in the last 4 months
Polygon has seen explosive growth in recent months, which has seen the value of its MATIC token rise by more than 4.800% since February. At press time, MATIC is holding a price of $1,45 per unit, being one of the most profitable and stable digital assets in the crypto industry in recent weeks.
DappRadar believes that Polygon's rise is due to more users becoming educated and aware of the alternatives and solutions that scalability protocols offer compared to Ethereum.
Continue reading: MATIC exceeds 2 dollars and Polygon attracts 75.000 users in the last week
