Polygon, which is a one of the early projects offering an Ethereum layer 2 scaling solution, has grown significantly in the past few months. It seems cheap transaction costs and fast block time have largely driven the growing adoption of Polygon.
Though recently the gas fees on the Ethereum blockchain have decreased, that has not broken off an increasing number of decentralized finance users and developers from converging to layer 2 solution Polygon.
According to crypto data site, DappRadar as of June 13, popular automated market maker SushiSwap has more than 15,000 unique active wallets on Polygon. In contrast, on Ethereum, that number was around 4,194.
DappRadar
reported that in May alone, DeFi money market Aave processed a daily average of worth $6.75 billion transactions on Polygon compared to $2.48 billion for Ave and $2.28 billion for Aave V2, respectively, on Ethereum. Both versions of Aave on Ethereum together processed, on average, 1560 transactions daily, while Aave on Polygon, processed an average of 9,224 transactions daily. A significant gap in numbers between the two chains is visible.
Source: Dappradar
In contrast, the trading volume of SushiSwap on Ethereum is still much higher than it is on Polygon. It seems that Polygon’s growth is majorly because of increased DeFi usage by retail traders and investors.
In the case of unique active wallet (UAW) addresses count the average UAW addresses on Aave were just 126 on Ethereum network, Aave V2 scored an average of 755 unique wallets daily. In contrast, Aave on Polygon attracted on average 2,928 UAW.
Source: Dappradar
For SushiSwap on Ethereum, the number of UAW is significantly higher 4,207. In comparison, On Polygon, Sushi is trying to catch up with just 2,773 UAW on average daily. But the positive trend for Sushi on Polygon is that the number of UAW increased exponentially every day in Month.
Experts believe that Polygon will attract more small-time traders, while Ethereum is still the industry leader for larger transactions.