In this analysis, we will count and plot the number of daily transactions and unique addresses on Polygon, beginning July 1, 2022.

Methodology

Issue

When performing the query for this analysis, it is noticeable that the data for some of the days for both flipside_prod_db.polygon.transactions and polygon.core.fact_transactions are not fully updated. Hence, the approach to this will be to utilise both tables to get the most accurate figures possible.

Daily Transactions

All the transactions on the Polygon blockchain are identifiable by their unique transaction id (tx_hash). The steps to retrieve the number of daily transactions are as follows:

Part A

• Filter transactions by date (from 1 July 2022 onwards) from polygon.core.fact_transactions
• Count the number of distinct transactions and group them by date

Part B

• Filter transactions by date (from 1 July 2022 onwards) from flipside_prod_db.polygon.transactions
• Count the number of distinct transactions and group them by date
• Get the higher value for each day after putting Part A and Part B together

Unique Addresses

The steps to acquire the number of new unique addresses from July 1 2022 are as follows:

Part A

• Get all the from_address and to_address addresses from flipside_prod_db.polygon.transactions
• Get the first transaction date for all distinct addresses, filter the address by date (before 1 July 2022)

Part B

• Get all the from_address and to_address addresses from polygon.core.fact_transactions
• Get the first transaction date for all distinct addresses, filter the address by date (from 1 July 2022 onwards)
• From part B, remove all the addresses that appear in Part A
• Count the number of unique addresses and group them by date

Result

Table 1 shows the number of daily transactions from 1 July 2022.

The bar chart represents the total transactions per day.

The line chart represents the cumulative number of total transactions over time.

The number of daily transactions seems to be pretty constant. As of 11 Jul, the highest number of transactions a day is 2.82m, and the lowest is 2.16m.

Table 2 shows the number of new addresses from 1 July 2022.

Based on the current market condition, we could expect a decline in the number of new users. However, the growth in new addresses on Polygon seems to be pretty consistent still.

As of 11 Jul, the highest number of new addresses a day is 65k, and the lowest is 33k.

Table 3 is a combined graph of Tables 1 and 2.

Black bar denotes the number of unique addresses per day.

Purple line denotes the number of daily transactions per day.

Typically, a higher user figure will lead to a higher transaction volume and vice versa. This is seen during the first few days of July when the number of users and transaction volume move in the same direction.

However, on 9 - 11 Jul, the gap between both charts gets wider. Some reasons for this could be:

• there is an increase in new users
• lesser on-chain activity per user

Conclusion

Has Polygon reached a plateau?

While there isn’t any continuous drop or rise in the transaction volume, we still see that there is still a stable number of new addresses interacting on Polygon every day. Growth on Polygon has surely slowed down in this current market condition. However, there is still a steady number of new addresses coming into Polygon daily. This could be due to a few reasons:

• there is value in Polygon still
• the recent migration of Terra-based projects
• existing projects on Polygon continue to deliver

Analysis Details

• Date of Analysis: 12 July 2022

• Blockchain: Polygon

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