Uniswap pushes Polygon – The Ethereum (ETH) network is facing significant congestion issues. This inevitably led to a significant increase in transaction fees. A godsend for second-layer solutions, which offer much less expensive ecosystems.
Polygon is on the rise
Polygon (ex-Matic) presents itself as a second layer solution to Ethereum. Thus, it uses a commit chain to perform off-chain processing.
Unsurprisingly, Polygon is compatible EVM, meaning it operates the same ecosystem as Ethereum. Therefore, applications hosted on Ethereum can easily be deployed on Polygon.
Although it was launched in 2020, it took until May 2021 to see users flocking to the network. Since then, the network has recorded an average of 4 million daily transactions.
In parallel, the number of users on the network also exploded. Indeed, the number of unique addresses has increased by 39 000 % since May 2021, going from some 300,000 addresses to more than 130 millions. For comparison, Ethereum has 180 million unique addresses, only 50 million more.
A rich ecosystem
First, excessive fees on Ethereum may be one explanation for Polygon’s success. Indeed, Polygon is much more attractive for small wallets, because the network has much lower fees than Ethereum.
Secondly, Polygon owes its success to the decentralized applications (dApps) that have migrated to its network.
Aave enabled Polygon’s first success, in rolling out its lending platform in April 2021. There is no doubt that Aave had a lot to do with the increase in activity recorded by Polgyon in May.
More recently, it was the turn ofUniswap to deploy its decentralized exchange platform on Polygon.
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Uniswap: cornerstone of this success
Since its launch in December 2021, Uniswap V3 deployed on Polygon has met with great enthusiasm.
According to report published by Simran Gogia, an analyst at Polygon, Uniswap V3 on Polygon enabled users tosave more $10 million in transaction fees, compared to if these transactions had taken place on Ethereum.
In total, Uniswap recorded 7,000 unique users. A figure up from 112 % between the end of December and the second week of January. On average, slightly more than 1,000 users interact daily with Uniswap on Polygon.
In addition, this low-cost environment generates a larger volume, at equivalent TVL, than that recorded by versions of Uniswap hosted on other channels.
“Polygon’s efficient and low-cost environment enables new types of user behavior on decentralized exchanges. This translates to about 3x more volume based on TVL (compared to Ethereum) and about 7x more than Optimism L2. »
In parallel, Polygon continues to develop other second layer solutions. Indeed, it recently announced the development of Polygon Zero, a layer 2 based on a zk-Rollup.
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