Research Summary
- Polygon PoS, an EVM-enabled sidechain scaling solution, has gained popularity due to its low fees and developer-friendly environment since its emergence in 2021. It has introduced various scaling architectures and is actively working on Polygon Miden, a ZK-rollup aiming to deliver a faster, more secure network with minimal transaction costs.
- Polygon Labs released v0.9 of Polygon Supernets, a significant milestone that introduces expanded allowlists, staking support, token separation, NFT bridge functionality, and improved deployment workflows.
- The Polygon Bridge for zkEVM provides a secure and user-friendly experience, offering fast finality and support for popular assets without the need for token mapping.
- Polygon 2.0, an upgrade proposal, aims to achieve scalability and unified liquidity through ZK technology, seamlessly connecting ZK-powered Layer 2 chains. The implementation is planned for Q1 2024.
- Major projects from both the web3 industry and other sectors have been drawn to the Polygon network, including y00ts, Eleos Labs, Regen Network, Franklin Templeton’s Franklin OnChain U.S. Government Money Fund, and Solid World.
- Flipkart, Hang, and Polygon Labs have collaborated to launch a brand-first loyalty program – FireDrops 2.0, leveraging web3 technology powered by Polygon’s blockchain infrastructure.
- In Q2 2023, the daily gas fees on Polygon PoS displayed notable volatility, ranging from approximately ~$68k to $236k, and daily transaction counts experienced a peak of around 3.0m transactions and a low of approximately 1.9m transactions.
- The number of daily active addresses on Polygon PoS remained relatively stable, fluctuating within a range of 253k to 475k.
- The average daily gas fees for transactions on Polygon peaked at $0.12, highlighting the comparatively lower gas fees on Polygon, making it an attractive option for cost-effective transactions when compared to Ethereum.
- Chainlink dominated transaction volumes on Polygon with 50.5m transactions, followed by Planet IX with 12.4m transactions. USDC and Tether emerged as the leading entities for user activity on Polygon.
- Smart Money on Polygon includes Airdrop Pro, First Mover Staking, and Smart NFT Sweeper, representing nearly 80% of the Smart Money on Polygon PoS, implying enthusiasm for both DeFi and NFT.
- Significant progress in Q2 2023 with the release of Polygon Supernets v0.9 and the introduction of Polygon 2.0. Notable developments also included NFT migrations, cybersecurity integrations, mutual fund adoption, digital securities expansion, and the launch of a brand-first loyalty program.
Actionable Insights
- Investment Opportunity: With the introduction of Polygon 2.0 and the release of Polygon Supernets v0.9, investors may find potential growth opportunities in the Polygon ecosystem.
- Strategic Collaboration: Businesses looking to leverage blockchain technology can explore partnerships with Polygon, as evidenced by collaborations with Flipkart, Hang, and others.
- Cost-Effective Transactions: Developers and users seeking lower transaction costs may consider Polygon’s network, which offers attractive gas fees compared to Ethereum.
- Security Enhancements: The integration of cybersecurity solutions like Eleos Labs’ FailSafe system indicates a focus on security within the Polygon network, potentially attracting more users and developers.
- NFT Growth: The migration of major NFT projects to the Polygon network and growth in NFT sales suggest a thriving NFT ecosystem, providing opportunities for collectors and creators.
