Introduction

Polygon, formerly known as the Matic Network, is a scaling solution that aims at providing an Ethereum alternative with a fast and low fee transactions.

User adoption is an important indicator of success of a project. User adoption can be measured by number of new addresses over time.

This dashboard investigates how the number of new users of Polygon has developed over time.

Definition, data and method

New address is defined as the wallet address which execute its first transactions.

Daily number of new addresses is measured as the sum of addresses which has executed their first transaction in the day.

Technically, the query groups transactions by addresses and extract the first transaction each wallet by 'min()' function. Alternatively, it is possible to 'rank' transactions of each wallet and filter transactions where rank = 1.

For this analysis FROM flipside_prod_db.polygon.transactions data has been used.

Analysis

The graph below shows the daily/weekly/monthly number of new addresses over time.

We can see from the graph that the user adoption has been increased since July 2021. The daily number of new users since November 2021 has declined, however, the decline's slope is not steep.

Additional analysis

The graph below shows how the daily number of new users correlate with MATIC price.

We can see that the decline of daily new users has started earlier than the steep decline of MATIC price which started in the beginning 2022.

In fact, while the network reached to its peak in terms of user adoption the price continued growing.

The graph below shows descriptively what new addresses do with their first transactions. The dominant sector is DEXes.

Notable findings

The daily number of the Polygon new users is varied over time. However, a trend can be identifiable:

A fast growth in 2021 and a slow decline in 2022.