Polygon has seen unprecedented growth in the past few months, with the number of active users and total value locked (TVL) in Polygon’s DeFi ecosystem increasing rapidly. During April, Polygon zkEVM Mainnet experienced up to +300% growth in key metrics. This month recorded some huge numbers for Polygon Mainnet as it gained further support for its community and larger Web 3.0 ecosystem. We will discuss these key metrics on gas costs, total value locked (TVL), net value bridged (NVB), and development activity in this report.
UAW Skyrockets in Polygon Network
According to the protocol, the total number of unique active wallet addresses on its zkEVM Mainnet Beta exceeded 50,000. A total of 95.25 ETH, or almost $177,000 in fees, is already generated across all transactions on the high-performance Zero-Knowledge platform. DappRadar report also indicates that Planet IX, a strategic play-to-earn NFT game, dominated the on-chain activity on Polygon in the first quarter.
Since its release, Polygon has served as a tool for scaling Ethereum and has gained significant attention from the industry. The zkEVM portrays a better version of the protocol. The Polygon zkEVM protocol is 7X cheaper than the existing Ethereum protocol when compared over the same time period.
A look at developer activity reveals significant growth as well. Over 1,000 contracts are going to be process on-chain, nearly double from 540 at the beginning of the month. While TVL is a modern metric, Polygon Labs points out that it isn't comprehensive because it frequently measures in USD. As a result, it reflects changes in the price of ETH more so than it does the daily expansion of a protocol.
On the Ethereum mainnet, in addition to the zkEVM, there are several more well-known Layer-2 protocols, all of which offer excellent network statistics and performance indicators. In comparison, switching from self-reporting to a more impartial analytics company, L2Fees, the Polygon zkEVM protocol ranks the fifth best Layer-2 protocol. It is because of the minimal costs incurred for token sending and exchanging.
Transactions and Activity
Variation in terms of transaction volume and user expenses compared to the Ethereum Mainnet? The overall volume of transactions has increased by +300% from the month's beginning. With 168k transactions as of April 24, this data set only contains successful transactions. However, the number of failed transactions is rather small.
Benefit to customers for those transactions? The average daily petrol fee (in gwei) indicates that Polygon zkEVM Mainnet Beta is 7X less expensive than Ethereum Mainnet for the same time timeframe. However, a more comprehensive perspective of transaction costs is yet to come.
As submitting proofs and transaction data to Ethereum reveals the rollup procedure to the same network load, it is predictable that both of these indicators also move together.
With a +300% increase in total value secured, the total assets on Polygon zkEVM Mainnet Beta similarly follow the trend. TVL is gaining adoption, however, it isn't comprehensive. For beginners, TVL measures in USD, reflecting changes in the price of ETH as well as the daily expansion (or contraction) of a protocol.
On Polygon zkEVM Mainnet Beta, the total assets can be seen in two different ways:
Total Value Locked (TVL)
In the most precise way, TVL refers to goods that have been connected to a network protocol, such as a DEX or loan service. One may argue that assets considered towards TVL are stickier than those unconnected to a DeFi protocol. Total Value Locked (TVL) is a statistic to calculate the total amount of digital assets. They are placed or locked in a certain distributed application (DApp) or decentralized finance (DeFi) platform. The platform appears to be more reliable when the TVL is higher.
Net Value Bridged (NVB)
We'll refer to the total quantity of assets to the network as NVB, minus the resources that are applicable back to the Ethereum Mainnet. NVB and total value bridged (TVB) can be employ in the future to demonstrate how users are utilizing the simple, no-delay bridging that is a key component of ZK rollups. As of April, TVB has a value of around $8.5M, or around $3.4M.
While we can see the Polygon zkEVM Mainnet Beta's health in both TVL and NVB screenshots, total value locked probably offers a clearer picture of the network's worth.
More About Polygon Network
Polygon is the only network that allows the staking of its token on the Polygon blockchain, making it stand out from its competitors. It further benefits its holders to earn handsome interest annually for validating transactions. Moreover, developers, small businesses, and regular customers can all benefit from Polygon's solutions. The main goal of Polygon is to build an IoT (Internet of Things) for the Ethereum blockchain.
The Polygon zkEVM has also been gaining traction, as more developers have been leveraging its fast and cheap transactions for their dApps. Several notable projects such as EasyFi, QuickSwap, and Cometh are successful on the zkEVM, and more are coming in the future. Polygon has also been actively expanding its ecosystem by joining forces with various projects and protocols.
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