Polygon’s Active Addresses Surpass Ethereum Briefly
The year 2021 has witnessed tremendous development in layer-two covenants, with a particular protocol temporarily outnumbering the network for which it provides a scalability solution with respect to active addresses. As per Polygon co-founder Mihailo Bjelic, the count of daily active distinct addresses on second layer aggregator Polygon has exceeded those on high-fee primary layer Ethereum.
At the beginning of this week, Polygon boasted 351,000 daily active addresses, while Ethereum seemed to have 326,000, as per Bjelic’s statistics. As per Polygonscan, the count of active addresses peaked at 426,586 on Monday but dropped marginally to 385,740 on Tuesday.
According to Etherscan, Ethereum’s daily active address number was 457,402 on Wednesday, indicating that both are now fairly equally balanced. Over the last three months, the count of active addresses on Polygon has increased by 330%, while Ethereum’s has decreased by 12% for the comparable measure.
As per Etherscan, Ethereum had 170.8 million aggregate distinct addresses as of Wednesday, whereas Polygon has 89 million cumulative district addresses as of Wednesday. Nevertheless, since Matic just relaunched as Polygon and debuted in February, its development has happened over a shorter time frame.
As per Polygonscan, Polygon has a higher volume of transactions at the moment, with 5.7 million aggregate transactions logged on Wednesday, compared to 1.1 million on Ethereum’s layer one. This is mainly due to Ethereum’s hefty fees, which have lately risen.
Another huge milestone for @0xPolygon! 🔥
We eclipsed Ethereum L1 in daily active addresses for the first time!
This is just the beginning. We are working round the clock to improve our tech, strengthen our ecosystem and increase adoption.
Let's bring the world to Ethereum! 💫 pic.twitter.com/K4sAF1y3LT
— Mihailo Bjelic (@MihailoBjelic) September 29, 2021
According to Defi Llama, the total value locked (TVL) of all covenants on Polygon is now $4.81 billion; nevertheless, it has over half from its all-time peak of $10.54 billion in mid-June. Aave, the flash loan platform, is by far the most popular covenant on the network, accounting for $1.77 billion TVL, or 37% of the total.
In May, billionaire investor Mark Cuban added Polygon to his portfolio, giving it a huge boost. As per CoinGecko, its in-house coin, still known as MATIC, has risen 5.2% in the last 24 hours to hit $1.14. In the past few days, Ethereum transaction costs have risen again, contributing to the increase in engagement on layer-two protocols.
The average transaction fee on the Ethereum network is now about $23, as per BitInfoCharts.Also, according Etherscan, more sophisticated activities such as decentralized exchange token switching or smart contract interactions may cost up to $66 in gas fees.