Tokens Swapped on Polygon

We are looking to see what liquidity Tokens are most popular on Arbitrum and how these tokens have been swapped over time. To figure this out We will find the top 10 tokens on Arbitrum in terms of swaps and swappers and we will look at the swap activity of these tokens over time.

What is Polygon?

Polygon is a “layer two” or “sidechain” scaling solution that runs alongside the Ethereum blockchain — allowing for speedy transactions and low fees. MATIC is the network's native cryptocurrency, which is used for fees, staking, 

What is the difference between L1s and L2s?

A layer 1 (L1) network blockchain that serves as the base layer to store information that can represent: - assets such as tokens; - smart contracts which can form dApps. Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major cryptocurrency networks.

What is a DEX?

A decentralized exchange (DEX) is a peer-to-peer marketplace where users can trade cryptocurrencies in a non-custodial manner without the need for an intermediary to facilitate the transfer and custody of funds.

Observations

In terms of both number of users and number of swaps the 3 most swapped assets on Polygon are HOP-matic, HOP-usdc, and the HOP-eth token. all of the tokes have over 200,000 swappers executing over 1.5M transactions. About half of all the top assets in use on Polygon were bridged from Ethereum to Polygon.

Observations

Currently there are about 30,000 - 45,000 swaps of top tokens on optimism per day. Most days there HOP-eth and HOP-usdc make up more than half of all the swaps of tokens on Arbitrum. TheHOP-usdt token has been continuously involved in about 10% of Arbitrum trades.

Observations

Currently the number of DEX swaps on Polygon are about 90% - 350% the swaps on Ethereum. The number of active users on Polygon each day make up 50% - 125% of the users on Ethereum. It seems that Polygon is currently a very active chain and there are 2x - 3x the swaps per user than on Ethereum.

Conclusion

The most popular assets on Polygon other than the native token are stablecoins weth, and matic.The users swapping the hop tokens on Polygon currently make up over 50% of the wallets swapping on the platform. Users swapping on Polygon are much more active than their counterparts on ethereum; one reason for this could be due to the low gass fees for swapping.