Try Quests to earn MATICPolygon Fees
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, and more. You can buy or sell MATIC via exchanges like Coinbase.
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Methodology:
In this dashboard I am going to look at Polygon and Ethereum since July 1st and see how the Fees have been effected over time. I will look for any major differences between the two across several metrics and discuss the implications of such. I will additionally try to look into other factors that could have effected the transaction fee’s and discuss those as well.
Analysis:
If we look to the graph on our far left we can see the daily fees paid on both Ethereum and Polygon since July 1st of 2022. As it apparently obvious the fee’s on Ethereum are much larger than that of Polygon. Moving on though we can see that the Fees on Ethereum are all over the place with spike followed by a dip on July 2nd and then an upward trend until July 5th after which the total daily fees began to trend back downward. This near exact trend also appears on Polygon highlighting the Polygon and Ethereum are likely directly proportional, meaning when one goes up the other goes up and when one goes down the other goes down. Although if we look at the Second graph directly to our left we can see that although they may follow similar trends in terms of when they go up and down the portions in which they go up and down are very different, as it appears that from July 3 to July 6th they were becoming more different every day before eventually crashing back down on July 7th.
Analysis:
If we look at the graph to the left right above we can see the average fee’s paid on Polygon by users, as you can see these are all over the place spikes and dips constantly in the short period, Ethereum on the other hand followed a somewhat consistent trend only moving upward after July 3rd. Overall it appears that the average fees for both platforms have been all over the place. If we look at the ratio for the average fees daily on our right we can see a similar trend that we noticed earlier in the graph for the total fee ratio, after July 3rd it begins to trend upwards meaning the average fee’s on both platforms were becoming more different everyday. By July 7th these fees were the most different highlighting that the fees on Polygon and Ethereum had diverged significantly at that point.
Analysis:
If we look at the way to the left we can see the price of MATIC and ETH graphed against one another, as you can see for the most part they tend to follow a very similar patterns and spike and dip at similar times. In fact if we look at the ratio between the two as shown in the graph directly to my left you can see that the ratio has remained very consistent since July 1st showing that the price ratio is very much that same. This highlights that any difference in the Tx_fees that have been paid are by no effect of large fluctuations in prices, as both coins have followed very similar patterns and none have drastically changed from the other in terms of the ratio.
Conclusion:
- The transaction fees on Polygon and Ethereum have followed similar patterns in terms of when they spike and dip since July 1st.
- Although Polygon and Ethereum spike and dip at similar times it appears that the extent to which they dip and spike is very different as the ratio for both average fees and total fees were very different at particular points throughout the week then they normally would be.
- The average fees for both Polygon and Ethereum have been all over the place over the last week with spikes and dips that make them rather inconsistent.
- The price ratio between Polygon and Ethereum remained similar throughout the week meaning any fluctuation in price likely had no effect on differences in transactions fee’s paid between the two.