Polygon Surpasses 811 Million Transactions, Cementing Web3 Dominance

• Polygon has hit over 800 million transactions over the past six months, the second-highest in the industry after TRON and just ahead of BNB Chain.
• Analysts believe that Polygon is in the buy zone despite gaining 8% in the past week, with the approval of Ethereum ETFs expected to be a massive tailwind for MATIC.

Polygon has maintained its position as one of the biggest Web3 ecosystems globally, with data showing that it recorded the second-highest transactions over the past six months.

As revealed by Polygon Stats, the network recorded 811.9 million transactions in the past 180 days, ranking only behind TRON and just ahead of BNB Chain at a close third. As the platform noted, “This metric essentially positions Polygon as one of the most active chains in Web3.”

.@0xPolygon has the 2nd most transactions between all chains in web3, just slightly behind @trondao.

This metric essentially positions Polygon as one of the most active chains in Web3. pic.twitter.com/ACcHvTRC5g

— Polygon Stats (@polygonstats) May 24, 2024

The top three networks are in their own league, with TON at a distant fourth with around 500 million transactions as Aptos and Arbitrum hit 300 million.

Comparing the number of transactions to the average transaction fee reveals why Polygon is one of the best blockchains to build on. The average fee on the network is $0.005, according to Token Terminal.

However, some of the other blockchains that rank highly on transactions fare poorly on fees. TRON, for instance, has the most transactions in the past six months, but its average fee stands at $0.633, over 120 times higher than Polygon’s.

While BNB Chain’s fees are lower than TRON, they are still relatively high at $0.131, with TON hitting $0.018. Ethereum remains the outsized leader on this metric at $3.17, which shows why Layer 2 networks like Polygon are critical for the second-largest chain as it grapples with high fees despite switching to proof of stake.

Polygon (MATIC) Remains in the Buy Zone

On the price chart, MATIC trades at $0.7468, gaining 4.15% in the past day and 8% in the past week. Its trading volume has rebounded strongly to start the week 43% higher than Sunday at $248 million.

However, analysts believe Polygon remains in the buy zone despite the gains. First, despite recent gains, MATIC has lost 23% year-to-date and close to 30% over the past three months. Data from IntoTheBlock also shows that four in five MATIC holders are still in the red at the current price, as the graph below shows.

The in/out of the money metric is vital in determining when investors are likely to dump their tokens. If most people are in the money, as is currently the case with PEPE, they are likely to dump their tokens to take a profit, which usually results in a price correction, as Crypto News Flash reported.

However, if most traders are still out of money, they are likely to keep holding the token and wait for it to hit a level where selling would yield a profit.

Other metrics prove the bullish thesis, including concentration, net network growth, the bid-ask volume imbalance and large transactions.