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Margaux Nijkerk
Margaux Nijkerk presented reports on blockchain protocols, highlighting the Ethereum ecosystem. She graduated from Johns Hopkins and Emory Universities and holds an MA in International Affairs. It possesses a very small quantity of eth and other altcoins.
Polygon, an Ethereum scaling tool, saw wide swings in daily transactions and active addresses during the fourth quarter as users scrambled to move funds during the epic meltdown of Sam Bankman-Fried’s FTX crypto exchange. The project has also implemented new partnerships and initiatives, according to a new report by the blockchain nansen analytics platform.
Polygon daily transactions ranged from 2 million to 3.7 million, while daily active addresses ranged from 350,000 to 1.7 million.
The number of daily transactions surged on Polygon in early November, when users attempted to yank out funds from the now-defunct FTX. Daily fuel charges also peaked at that time, with the highest day being $570,000. The lowest point for the daily gas charge was $16,000 at the beginning of October.
The graph on the left shows the number of additional transactions on the polygon (violet line) in relation to ethereum. On the right, average daily "gas" costs paid were cheaper on polygon. (Nansen)
Compared to Ethereum, Polygon’s daily transactions were almost twice as high and more volatile during the quarter, while daily gas paid was 40 to 100 times cheaper on Polygon.
J June Lee, the report's author and one research analyst at Nansen, Told CoinDesk that Polygon's volatility in Q4 was due to many developments in addition to the insolvency of the FTX.
Non-fungible token (NFT) "Launches, partnerships, can all lead to more transactions, not just move the native token," Lee said.
The tremendous addition of daily addresses was partly due to the launch of Polygon’s zero-knowledge EVM public testnet.
Zero-knowledge (ZK) rollups is a technology that processes packet transactions and uses "proofs," which are bite-sized pieces of data that confirm the transactions are "true" and have not been modified. The deployment of the Ethereum Virtual Machine (EVM) for Polygon’s ZK rollup means developers can move smart contracts into the Polygon environment from Ethereum without any hiccups.
Polygon's zkEVM is expected to launch on the main network at the beginning of 2023.
Read more: Ethereum Scaling Tool Polygon Launches its zkEVM Public Testnet
Also bringing more users into the Polygon ecosystem was the announcement to integrate the BINANCE USD (BUSD) stablecoin into the protocol.
Starbucks Odyssey loyalty program made members eligible to earn and purchase digital collectibles in the form of non-fungible tokens on Polygon. Instagram began testing new features to sell NFTs on the Polygon network.
In terms of what needs to be monitored before the next quarter, Lee argues about launching the core network zkEVM, Sell NFT on the blockchain, and general approval, will cause the user to grow continuously for Polygon.
