Polygon [MATIC] Dominates Ethereum Layer-2 Scene, Collects $7M in Fees YTD

• Polygon [MATIC] collected more than $7 million in transaction fees in the year-to-date (YTD) period.
• It outperformed layer-2 scaling solutions, like Arbitrum and Optimism, in terms of transaction fees collected over the last 30 days.
• MATIC became the most traded token among top Ethereum whales.

Polygon Records Growing Network Usage

Polygon [MATIC] collected more than $7 million in transaction fees in the year-to-date (YTD) period, which highlighted the Ethereum [ETH] sidechain’s growing network usage. According to a 28 February tweet, with over $7.25M earned in $MATIC fees so far this year, Polygon is off to a good start.

Polygon Outperforms Layer-2 Scaling Solutions

Data from Token Terminal revealed that Polygon outperformed layer-2 scaling solutions like Arbitrum [ARB] and Optimism [OP] in terms of transaction fees collected over the last 30 days. The protocol’s revenue depends largely on the gas fees collected, and recent activity throws up challenges for Polygon as daily gas fees have plunged 30% since 21 February.

MATIC Becomes Most Traded Token Among Top Ethereum Whales

MATIC also became the most traded token among top Ethereum whales according to WhaleStats’ tweet from 27 February. The surge in accumulation could be attributed to the much-anticipated Polygon’s zkEVM scaling solution, which was slated to be launched on 27 March.

MATIC Price Drops Below Neutral 50 Level

At press time, MATIC exchanged hands at $1.23, down 2.35% in 24 hours period as Relative Strength Index (RSI) dropped below neutral 50 level indicating bearish pressure on coin price movement despite its popularity among whales trading activity as well as its upcoming launch of zkEVM scaling solution soon by end of March 2023.

Conclusion

Despite recent dip due to decreased daily gas fee collection and decreasing action on Polyon DeFi front which led its DEX trading volume plummet 57% over past 10 days; MATIC still remains one of most popular tokens amongst big ETH wallets holders and has potential for longterm upside move given upcoming release of zkEVM scaling solution by end of March 2023