Inflows and Outflows on Polygon

Polygon has been very popular lately. With introduction of many protocol, there has been surge of assets flowing into Polygon. Ethereum's current proof-of-work consensus mechanism, Ethereum suffers from network congestion, slow transaction speeds and low throughput. This has often led to high transaction fees (gas fees) for users. Polygon explore new option by offering a platform where developers and consumers benefit from L2 scaling solutions. Polygon Bridge is one way to transfer fund from Ethereum network to Polygon network. In this dashboard, we will take a look at the inflow and outflow of USDC and ETH from Ethereum to Polygon.

Comparing both graph, we can see that the inflow into Polygon is higher than outflow for both USDC and Ether. This is mainly because gas for transaction on Polygon is basically negligible which many of users especially small retailer and new user finds it appealing. It is also a good place to start utilizing full extent of cryptocurrency.

The graph below shows the volume of USDC and Ether that flow out from Polygon to Ethereum through Bridge.

Graph below is the inflow of USDC and ETH from Ethereum network to Polygon. We can see some spike of USDC on 12th July. I believe this is because the introduction Hop Exchange Protocol which allow for very cheap bridge fees and also you get higher value after bridging which is very attractive to many retail users.

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Inflows and Outflows on Polygon