Results & conclusion

In this dashboard we will be looking at the number of daily transactions and unique addresses executing those transactions in order to answer the question if Polygon is still growing.

In this occasion, the data sources used are:

• polygon.core.fact_transactions: In order to analyze the activity from July 1, 2022 as per Flipside’s question
• flipside_prod_db.polygon.transactions: In order to look backwards from the requested period of analysis for the sake of ascertaining the trend

The time frame of the analysis is comprehended between July the 1st 2022 until the day of writing of the dashboard. However, we will be looking back in order to check the overall trend.

Q1. Count and plot the number of daily transactions and unique addresses on Polygon, beginning July 1, 2022. In your estimation, discuss whether Polygon is still growing, has reached a plateau, etc.

Introduction & Methodology

Flipside’s Question

First of all, let’s take a look at the daily evolution of transactions from the early stages of the blockchain:

As observed in Figure 1, the number of daily transactions is on a decreasing trend from June 2021 even in the period in which $MATIC reached its all-time-high (back in December 2021). When focusing on the picture from July 2022:

The zoom-in of Figure 1b allows to observe how the number of transactions in the period of analysis is stagnated between 1M and 3M daily transactions.

Next, we will take a look at the unique users interacting with the blockchain:

As observed in Figure 2, the name of unique addresses which are responsible for the transactions in the period of analysis is stagnated around 200k on a daily basis in the period of analysis (at the exception of the peak in June 27).

To summarize at this point, in the eyes of the daily number of transactions and unique users of the blockchain, a certain degree of stagnation is observed in the Polygon ecosystem. However, the overall market conditions must be taken into account: macro-economic context and correlated bear crypto market.

In order to complement this analysis, it is relevant to take a look at whether the developments in the ecosystem have stagnated as well or not. In a healthy ecosystem, even in bear market, we should observe and increasing number of project/initiatives which can be tracked through the number of interacting addresses:

Data in Figure 3 endorses the train of thought of a potential stagnation in the Polygon ecosystem since the number of contracts which are interacted on a daily basis remains constant in the period of analysis.

No relevant insights are found when drilling-down the data at type of contract since the shares are almost constant as well (no disruptive new projects arise in any given category, or at least, they hold a discrete number of contracts).