Question:

Q7. Combine prior grand-prize-winning submissions into a single, interactive dashboard that can give users a broad view into the Polygon ecosystem.

Overview of essay:

In this essay, dive deep into the Flipside community data on Polygon and establish investigation based on these data.

This study divided into the two main sections:

• Analyze network performance
• MATIC price and circulating supply
• Study the main sectors on Polygon from the participation aspect

In the first one, the daily count of active users, newcomers, transaction per minute (TPM), paid fee, Block analysis, MATIC price and success rate of network have been analyzed.

For the second part, the behavior of Polygon network from participation on main sectors like Dexs, Layer2, DeFi, … has been evaluated.

The appearance of Polygon data on Flipside was from June 15, 2022.

Polygon network:

Polygon is one of the best examples of the second layer solution to solve the low scalability problem of the Ethereum blockchain. Polygon Ethereum layer 2 network is a dedicated framework for building blockchain networks and providing solutions to increase the scalability of Ethereum. Polygon is designed as a proof-of-stake side chain and operates in parallel with the Ethereum blockchain. This issue has caused Ethereum to become a fast and low-cost platform and it is used for decentralized applications (DApps) of Ethereum.

Of course, Polygon is not just a scalability solution and offers a set of different solutions to improve the efficiency of different networks. For example, one of Polygon's features is the software development kit (SDK), which is very useful in developing scalable solutions compatible with Ethereum. Also, by using the Polygon network, there is no need for all transactions to be registered and processed on the Ethereum main chain. Because of this, the speed of transactions has increased and the fee required for them has decreased.

In general, the Polygon network and digital currency is one of the promising projects in the field of cryptocurrencies, which can be used to increase scalability even with the development and presentation of Ethereum 2.0.

Approach:

1. Active wallets and newcomers: Users and newcomers from polygon.core.fact_transactions

2. Status analysis (success rate): STATUS, count(distinct tx_hash) from polygon.core.fact_transactions

3. Paid fee: sum(TX_FEE) as fee from polygon.core.fact_transactions

4. Transaction per minute (TPM):

   date_trunc('minute', block_timestamp) as minute, count(tx_hash) as count_txn from polygon.core.fact_transactions

5. Circulating supply of MATIC:

   sum(balance) as curculating_supply, Count(user_address) as holders from flipside_prod_db.ethereum.erc20_balances

6. MATIC price:

   avg(PRICE) as matic_average_price from flipside_prod_db.ethereum.token_prices_hourly

   where TOKEN_ADDRESS = lower('0x7D1AfA7B718fb893dB30A3aBc0Cfc608AaCfeBB0')

7. Identify the Major sectors performance on Polygon:

   LABEL_TYPE as sectors, count(FROM_ADDRESS) as Users

   from polygon.core.fact_token_transfers x join polygon.core.dim_labels y on x.TO_ADDRESS= y.address

8. Clarify the performance on each sector:

   PROJECT_NAME, count(FROM_ADDRESS) as participants,

   from polygon.core.fact_token_transfers x join polygon.core.dim_labels y on x.TO_ADDRESS= y.address

   where LABEL_TYPE ='dex' or 'defi' or 'layer2' or 'nft'

Decide to make this dashboard Live by setting Refresh rate on Daily

Part 1 of results: Performance analysis on Polygon Network

Key findings 1:

As mentioned earlier, this part belongs to the performance analysis of Polygon network over time:

1. More than 162.5 million transactions have been executed by 3.81 million unique users on Polygon so far.

2. The Polygon as L2 is known for its lower transactions fee rather than Ethereum network. The total paid fee on this network is 4.87 million MATIC.

3. The average transactions per user on Polygon is about 42.7 transactions and the average transaction per block is 74.8 transactions

4. From the block performance analysis, the average time between blocks for Polygon is 2.27 sec.

5. The Daily number of active wallets (who made at least one transaction) has been increased in the first two weeks but reduced after June 27th.

6. The daily count of newcomers on Polygon has raised to high level on June 27 with more than 210k unique users and after that followed the decreasing pattern.

7. The overall success rate of Polygon network is about 94% and the daily status analysis reveals the lowest success rate was about 91.42% of transactions and happened on June 13th.

8. According to TPM graph of Polygon, the performance of network is acceptable and the highest TPM happened on June 12 with 14.76k transactions per minute.

9. Based on this figure related to the circulating supply of MATIC, the amount of MATIC token in public hands volatile with price of MATIC.

10. The price of MATIC has been followed the increasing trend as shown in the graph.

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Part 2 of results: Investigation on Sectors of Polygon

Key findings 2:

Now in the second part, lets look at the sectoral analysis on Polygon network.

1. The overall application of sectors on Polygon reveals the domination of DEXs over other sectors on Polygon.
2. The daily area graph related to the application of main sectors illustrates the space related to each main sector and the largest space belongs DEX and DeFi.
3. One of the powerful tools to evaluate the participation over time is grow rate (cumulative) analysis. According to the line graph of grow rate, the application of DEX and DeFi sectors are more than others and the application of DEXs have been dominated the proccess.
4. From the Layer2 sector point of view, it can be seen that most of the time the highest usage belongs to HOP protocol.
5. From the results related to the detailed analysis of DEX sector, it can be seen that the Sushiswap is the dominant DEX program on Polygon. Next ranks belong to Balancer with 27.9% of DEX application.
6. The DeFi program with the most application on Polygon is Aave and **Tetu **takes the other spot.
7. The most used NFT programs on Polygon are Etherland:dead tokens and MNFT token.
8. The application of Dapp programs has dominated by Opensea and Celer network as can be seen from the related graph.
9. As mentioned in the previous statement, the OpenSea is the most used Dapp on Polygon and the daily usage of this program reveals the highest application on June 8th with 7905 count of interactions.
10. The count of interaction with OpenSea decreased from June 15 to very low numbers.