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    Polygon Fees

    Polygon network is an interoperability layer two scaling solution for building Ethereum-compatible blockchains. It issued $MATIC token which are used for governance, staking and gas fees. However, Polygon currently utilizing proof of stake consensus mechanism while Ethereum still using Proof of Work, but they plan to migrate to PoS early next year. Gas fees refers to the fee required to successfully conduct a transaction on blockchain and are paid in the network's native currency, in this case $ETH for Ethereum and $MATIC for Polygon.

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    METHODOLOGY

    1. Get gas fees from transaction tables in both Ethereum and Polygon schema.

    If we put both volume of daily gas fees for both Ethereum and Polygon on same scale, we can only see a flat line near 0 for Polygon. This is mainly the reason why many people prefer Polygon over Ethereum. Sometimes on bad day, you would have to pay $250 to transfer $250 worth on Ethereum while it would cost almost zero on Polygon.

    From the graph, we can see the peak of gas paid on Ethereum network on September 7th at over 70M USD. This is during the peak of NFT mania and most of this are used to do transaction on Opensea.

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    The same can also be said for average fees paid. Last few weeks, the average fees on Ethereum was almost 60 USD while it cost just over 1 cent on Polygon.

    Even though fees are cheap on Polygon, there are other disadvantages such as list of dapps currently available on Polygon vs Ethereum, securities concern and etc. In addition, Ethereum is more of a settlement layer where ETH itself has a monetary value while $MATIC token is more of PoS token which is just used to pay for transaction, well at least for now.

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    graph below shows the daily transaction count on both Ethereum and Polygon. We can see that the transaction on Polygon has surpassed Ethereum by quite some margin.