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Polygon News: Network Sees Consistent Transaction Value, dApps Break 19,000 and More



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Here are the recent exciting headlines around Polygon:

Polygon maintains consistent transaction volume despite standstill activity in Q1

Blockchain intelligence and analytics platform Nansen recently released a report reviewing the performance of various blockchain networks. The analytics platform found that Polygon's merits, including the low gas fess and high performance in transaction processing, scalability, and low power use, were push factors in spearheading the adoption of the network in 2021. Adoption of Polygon grew by 1000% last year.

The report explained that even though the transaction volume recorded on the Ethereum layer two scaling solution remained stable throughout the first quarter of 2022, the level of increasing activity seen throughout last year came to a halt.

Nansen further observed that though the growth trend didn't extend into this year, Polygon still saw spikes in the gas fee charged during the first quarter – an indicator of booming activity on the network. Reason for these massive fees, largely seen in the early days of January, is the accidental attack the blockchain-based game Sunflower Farmers had on the network.

At the time, gas prices rose by more than 1000% of the lowest fees of December 2021. On January 5, the average gas price on Polygon stood at 763.63 Gwei, up from as low as 72.33 Gwei on December 27 last year.

Far from the events of early January, Polygon has historically shown good gas price performance. Nansen explained that Polygon records as low as 0.5% in gas fees paid on Ethereum while completing 300% more transactions.

dApps on Polygon surpass 19,000

Last June, Polygon and Alchemy, a leading infrastructure provider for developers, reached an agreement that would help Polygon expand its state in the decentralized world by enhancing the speed and costs of deploying dApps.

Now, Polygon has reported that the number of decentralized applications on the blockchain has grown to 19,000 – more than six times the figure six months ago. According to data provided by Alchemy, which offsets the troubles of backend infra for developers on Polygon, Ethereum, and other chains, the number of teams actively building on Polygon was just a few thousand last October. It then grew to 6,000 in January, and the figure now sits at 8,000 active development teams monthly.

Also, most developers are choosing to solely build on Polygon, with 65% of the teams plugged in exclusively on Polygon – mainnet and testnet – and the other 35% on Ethereum.

This booming developer activity is a sign of heightening the adoption of blockchains and increasing popularity of DeFi solutions – dApps and non-fungible tokens (NFTs). Polygon PoS chain saw 3.4 billion transactions completed by more than 135 million distinct user addresses in 2021.

LABEL Foundation dApp launching on Polygon, after BSC and Ethereum

Blockchain-based, NFT, copyright fee-sharing platform LABEL last Wednesday announced the launch of a partnership with Polygon Studios, the Polygon network's blockchain gaming and NFT-focused arm, to boost its efforts to complete a multichain launch of its dApp. The LABEL Foundation targets Ethereum, Binance Smart Chain, and now Polygon.

The collaboration will allow LABEL to gain from Polygon's merits, including the ability to establish an NFT marketplace running on low fees. LABEL also gains from Polygon's high throughput and the ability to work with several other projects under the Polygon umbrella.

In the web of partnerships, LABEL has recently inked an agreement with on and off-ramp platform MoonPay – a current partner of Polygon Studios, to host an NFT event in New York mid this year. The already established rapport should enable LABEL to gain a foothold in more Polygon projects and extend the interactive relationship into the future.

Valkyrie launches proof of stake multi-token Trust

With three exchange-traded funds tracking Bitcoin, asset management mammoth Valkyrie Investments has announced the launch of a new post-BTC and ETH fund. This means the new Valkyrie Multi-Coin Trust (VMCT) will invest in tokens and chains created after the launches of Bitcoin and Ethereum, plus layer ones and layer twos.

The multi-coin Trust includes Polygon (MATIC), Cosmos (ATOM), Avalanche (AVAX), Binance (BNB), Terra (LUNA), Gemini USD (GUSD), Zilliqa (ZIL), and Helium (HNT). With Gemini's 30% as the lead allocation, the chosen tokens were trusted to grow into the future. Valkyrie said other tokens could be added based on a number of factors, including liquidity and staking opportunities.

The Trust would have a minimum investment figure of $100,000, available only to accredited investors. It would also charge a management fee of 2.5% and offer investors an annual return rate of 6%.

Chief Investment Officer Steven McClurg said that this Trust comes to serve investors who seek a product with Valkyrie's “highest-conviction plays” in the industry. He told Blockworks that as a multi-asset product, the Valkyrie Multi-Coin Trust (VMCT) comes when the wealthy investor (family offices and accredited investors) wants exposure to the crypto scene with several, not a single token.

To learn more about Polygon visit our Investing in Polygon guide.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.