Polygon Overtakes Ethereum in Daily Transaction Fees
Polygon has briefly surpassed Ethereum in daily transaction fees, marking a significant milestone for the Layer-2 network. The surge appears to be largely fueled by booming activity on prediction market platform Polymarket.
According to recent data from Token Terminal, Polygon generated $407,100 in transaction fees on Friday, compared to Ethereum’s $211,700. This marks the first time Polygon has ever flipped Ethereum in daily fee generation.
While the gap narrowed the following day—Polygon posted $303,000 in fees compared to Ethereum’s $285,000—the event highlights shifting user demand toward Layer-2 networks that offer lower costs and faster transactions.
Over the past 30 days, Ethereum has maintained higher average daily fees overall. However, Polygon’s recent spike demonstrates how rapidly activity can shift when a single high-demand application gains momentum.
Polymarket and USDC Activity Power Polygon’s Growth
The main driver behind Polygon’s fee surge appears to be Polymarket, one of the most prominent blockchain-based prediction markets since its launch in 2020.
Matthias Seidl, co-founder of Ethereum analytics platform growthepie, noted that Polygon’s recent growth has been “fully driven by Polymarket.” Data shared by Seidl shows Polymarket generated over $1 million in fees on Polygon in the past seven days. By comparison, the next-largest application on the network, Origin World, produced roughly $130,000 during the same period.
Polygon’s team also pointed to major activity spikes within Polymarket. In one example, more than $15 million worth of wagers were placed on a single Oscars market category. Polygon emphasized that all of this activity runs directly on its network infrastructure.
Beyond prediction markets, stablecoin usage on Polygon is also rising. Analysts have highlighted increasing transaction volumes involving USDC, the dollar-pegged stablecoin issued by Circle.
Recent data shows Polygon reached a new weekly high of 28 million USDC transactions. Notably, Polymarket uses Polygon-based USDC for all trading on its platform, further strengthening the connection between stablecoin growth and rising network fees.
Prediction Markets Fuel Layer-2 Adoption
Prediction markets have seen renewed interest since the last US election, driving both trading volumes and user adoption across crypto platforms. As demand grows, several blockchain companies are exploring or launching their own prediction-based products.
Polygon’s recent performance demonstrates how specialized applications—particularly high-frequency trading platforms like Polymarket—can rapidly boost Layer-2 network revenue.
