Daily Transactions and Unique Addresses

Tasks:

1. Count and plot the number of daily transactions and unique addresses on Polygon, beginning July 1, 2022.
2. Estimate and discuss whether Polygon is still growing, has reached a plateau.

Methodology

• Show an overview of the Polygon using the total and cumulative view of transaction count and unique address
• Count and plot the number of daily transactions and unique addresses on Polygon, beginning July 1, 2022.
• To determine whether Polygon still growing, or reached the plateau, we decide based on the following measurement:
  • Daily transaction-to-unique_address ratio: The ratio between daily transaction counts and unique addresses on the same day, which higher ratio means more daily activities for each address.
  • Cumulative transaction-to-redundant_address ratio: The ratio between cumulative transaction counts and cumulative of unique users on each day before, which may not unique for all days i.e. redundant between days. The higher ratio means the higher overall activities among addresses.
  • New-to-total addresses ratio: New users always bring new transactions, on the other hand, the ratio between new users and total users indicates the impact of the transaction counts from new users compare to overall transactions.

The graph above depicts the cumulative transaction count and unique address since Jan 2021.

• After May 2021, the transaction volume has notably increased and maintained the growth rate up to the present.

The number on the left and right of this box represents the total transaction count and unique addresses respectively.

First, we show the average statistic of Polygon since July 1, 2022.

Each dot on the left graph represents the one-day information.

• The height is the number of transaction counts while the size and shade mean the number of unique addresses.
• The bigger size and darker shade dot tend to have a higher position which means the more unique addresses, the more transaction count.

The number of new addresses is one of the factors that can identify the growth status.

• High number of new address means the blockchain can attract new users to join the the their chain and lead to higher number of transaction count and activities in their ecosystem

The graph on the left depicts the daily number of unique addresses since July 1st.

• The daily number of unique addresses has 193k - 242k range.
• The unique new addresses are around 23% of the daily unique addresses.

Determine whether Polygon still growing, or reached the plateau

Polygon Overview

Count and plot the number of daily transactions and unique addresses on Polygon, beginning July 1, 2022.

To reduce the fluctuation from noise, we use a seven-day moving average called ‘week smoothing’ to convert noisy graphs on the left side to smoother graphs on the right side.

• The graphs on the right allow us to see the trend easily.
• We will calculate the ratio based on the smoothed version.

Daily transaction-to-unique_address ratio

The blue, orange, and red lines represent the week-smoothing transaction count, week-smoothing unique addresses, and week-smoothing transaction-to-unique_address ratio, respectively.

• From the red line, the ratio is at the top in May 2021, then falls back, and has entered the plateau phase since Nov 2021.

• This means the daily number of transactions per address is settled at around 11.

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Cumulative transaction-to-redundant_address ratio

New-to-total addresses ratio

The blue, orange, and red lines represent the cumulative transaction count, cumulative redundant addresses, and cumulative transaction-to-redundant_address ratio, respectively.

• From the red line, the ratio is at the top on Jun 2021, then gradually decrease and tends to enter the plateau since May 2022.

The blue, orange, and red lines represent the daily total unique addresses (equivalent to cumulative unique addresses), daily user new addresses, and New-to-total addresses ratio, respectively.

• From the red line, the ratio has a peak range of around 0.01 to 0.1 in May 2021 before entering the plateau after Jan 2022 which fluctuates below the 0.01 range.
• Even though there are 20% new addresses compared to daily unique addresses, this proportion is not big enough to impact the overall transaction counts.

Conclusion

• In this dashboard, we provided an overview of the Polygon chain, daily transaction counts and unique addresses since July 1, 2022.
• From the daily transaction counts and unique addresses part, we found the correlation between them in the way that the more unique addresses, the more transaction count.
• We collect three pieces of evidence including the Daily transaction-to-unique_address ratio, Cumulative transaction-to-redundant_address ratio, and New-to-total addresses ratio which all confirm that Polygon has reached the plateau phase since July 1, 2022.