Polygon recorded higher daily transaction fees than Ethereum over a recent three-day period, with analysts attributing the surge largely to strong activity on the prediction market Polymarket.

Data from Token Terminal showed Polygon generated approximately $407,100 in transaction fees on Friday, compared with Ethereum’s $211,700, marking the first instance in which Polygon surpassed Ethereum in daily fee revenue. The difference later narrowed, as Polygon registered about $303,000 in fees on Saturday while Ethereum reached roughly $285,000.

Polymarket drives network activity

Polymarket, one of the most prominent blockchain-based prediction markets launched in 2020, operates on Polygon and has been identified as the main source of recent network growth.

In a post on X, growthepie co-founder Matthias Seidl stated that Polygon’s recent increase in activity had been “fully driven by Polymarket.” Data shared alongside the post indicated Polymarket generated just over $1 million in fees on Polygon during the past seven days, far exceeding the next-largest application, Origin World, which produced around $130,000.

Polygon also reported heightened engagement on the platform, noting that more than $15 million in wagers were placed on a single Oscars prediction category, emphasizing that “Polygon is the chain underneath it” all. The network further indicated that a growing number of trustless agents are being deployed on the layer-2 system to identify and capture opportunities within the prediction market ecosystem.

Expanding ecosystem and stablecoin usage

Prediction markets have experienced increasing adoption since the last United States election, prompting multiple cryptocurrency companies to introduce similar products.

At the same time, rising stablecoin activity has also been observed on Polygon, particularly involving Circle’s USDC. According to Polygon data analyst petertherock, the network recently recorded a new weekly peak of 28 million USDC transactions, reflecting broader expansion in onchain usage.

Sources:

https://tokenterminal.com/explorer/projects/polygon/metrics/fees?interval=30d&granularity=day

https://cointelegraph.com/news/polygon-flips-ethereum-in-daily-transaction-fees

https://x.com/web3_data/status/2023448545747984677

https://x.com/0xPolygon/status/2022816520737305025