Polygon daily fees flip Ethereum amid prediction market boom

Polygon has recently surpassed Ethereum in daily transaction fees for three consecutive days, driven by the high user activity on prediction market Polymarket.

Token Terminal data shows that on Friday, Polygon generated $407,100 in transaction fees, outpacing Ethereum’s $211,700. This marked the first time Polygon has exceeded Ethereum in daily transaction fees.

The average daily fees comparison between Ethereum and Polygon over the past month. Source: Token Terminal

Although the gap has since narrowed, with Polygon recording $303,000 in daily transaction fees on Saturday compared to Ethereum’s $285,000, the momentum remains strong on Polygon.

Polymarket, a popular prediction market launched in 2020, has been a key driver of Polygon’s recent growth. Matthias Seidl, co-founder of growthepie, highlighted Polymarket’s significant contribution to Polygon’s transaction fees, with over $1 million generated in the past week.

Source: Matthias Seidl

Furthermore, Polygon has seen a surge in activity on Polymarket, with over $15 million in wagers placed on a single Oscars market category alone. The platform emphasizes the deployment of trustless agents on the L2 to capitalize on opportunities in the prediction market.

With the increasing popularity of prediction markets post the US election, several crypto firms are launching their own offerings.

Related: ETH chart pattern forecasts a potential rally to $2.5K upon meeting key conditions: Data

Additionally, there is a growing trend of stablecoin usage on the L2, notably with Circle’s $USDC. Polygon data analyst @petertherock noted a new weekly high of 28 million $USDC transactions on the network.

Polymarket leverages Polygon-based $USDC for trading activities on its platform.

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