In April, daily users were 7,970. Six months later, Polygon has multiplied users 22x.
Polygon proof of stake (POS) continues active user growth for the 9th consecutive week.
Part 1: Polygon PoS engagement growth
This week Polygon broke its previous DAU record, growing 16.64% week over week. On average, over 176k users engage on Polygon daily.
In April, daily users were 7,970. Six months later, Polygon has multiplied users 22x.
In addition to a nominal record number of users, Polygon also has an all-time high relative to Ethereum at 36.31%.
What is driving this growth?
New users remain extremely high. This week over 122,350 addresses came onto the network.
While 122k is a massive number, it is actually a decline from the highs experienced through the month.
The decline would normally signal a leveling off or even decline in total daily users. However, the latest cohort’s retention numbers have improved markedly.
For whatever reason, recent cohorts have not re-engaged with Polygon at the same rates as previous cohorts. In fact, before this week, the last four cohorts were in the bottom quartile in terms of 1-week retention.
But that changed this week!
Week 1 retention improved 60.65%, breaking out of the bottom quartile.
The improved retention more than made up for lower cohort sizes and pushed Polygon’s DAU to new heights.
Finally, we see the increase in active users has led to another increase in network transactions.
Polygon has increased transactions steadily over the last four weeks. Average daily transactions took another 4.69% step towards all-time highs, crossing the 6mm milestone.
Part 2: Polygon PoS monetization growth
Next is monetization.
After reaching all-time highs last week, network revenues dropped substantially to $27.7k.
Lower gas costs combined with a weaker $MATIC price caused revenues to decline despite total transactions going up.
Summary
Polygon PoS is helping more users while simultaneously reducing transaction costs. The average transaction cost this week was only $0.0045.
This is a huge benefit to all users. And, we see this expressed not only in the number of transactions the average user takes (which remains 15x that of more expensive chains like Ethereum) but also in wider network adoption for use cases outside of defi like NFTs and gaming.
Growth in the NFT space is especially promising, with total sales in August being 7.86x July.
More importantly, unique users multiplied 8.45x, from roughly 17.7k individual addresses trading on OpenSea to 150k.
About Polygon
Polygon is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building and connecting Secured Chains like Optimistic Rollups, zkRollups, Validium, etc, and Standalone Chains like Polygon POS, designed for flexibility and independence. Polygon’s scaling solutions have seen widespread adoption with 500+ Dapps, ~567M+ txns, and ~6M+ daily txns.
If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your Dapp, get started here.
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