Quantity of Polygon (MATIC) transactions halves after sharp rise in transaction costs

Polygon (MATIC) has made quite a name for itself in the world of cryptocurrencies over the past year. It is a so-called layer-2 scaling solution for the Ethereum (ETH). It was recently announced that the Polygon network had more active daily users than the Ethereum network for the first time.

Gas parties

This extremely rapid growth of the Polygon network now seems to have come to an abrupt end. The daily amount of transactions fell from about 6 million transactions per day at the beginning of this month to about 3.1 million on October 11. That’s a significant drop.

This is the result of a deliberate increase in transaction costs on the Polygon network. These costs, or gas parties, were increased from about 1 Gwei to no less than 30 Gwei. The effect on trading volume was noticeable almost immediately.

Polygon co-founder Sandeep Nailwal indicated that the team behind the layer-2 scaling solution will reduce the gas fees was going to raise to prevent ‘spam transactions’. A minimum amount of 30 Gwei should be paid for each transaction.

In the past, the Polygon network was the victim of ‘spam attacks’ in which large amounts of transactions were executed simultaneously in order to overload the network. By increasing the gas fees, such attacks become practically impossible because it will cost the attacker too much money.

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At first glance, a 2900% increase in gas fees seems huge, but a transaction on the Polygon network still remains a much cheaper than a transaction on the layer-1 Ethereum network. Here a transaction easily costs several tens of dollars while a Polygon transaction costs less than a cent even now.

Although the amount of daily transactions has decreased dramatically as a result of rising gas fees, Polygon still continues to work excellently as a layer-2 scaling solution for the Ethereum network.

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