Polygon Overtakes Ethereum in Fee Race, thanks to Polymarket

Polygon just pulled off something few networks manage to do. It surpassed Ethereum in daily transaction fees, according to multiple reports.

Daily fees are a key metric in crypto. They show how much users are willing to pay to use a network. Higher fees often signal strong demand and heavy on-chain activity. For years, Ethereum has dominated this category due to its deep DeFi and NFT ecosystem.

This time, however, Polygon took the lead. The main catalyst appears to be Polymarket, a blockchain-based prediction market platform built on Polygon. Prediction markets allow users to bet on real-world outcomes, from politics to global events. According to reports, activity on Polymarket surged sharply, driving up transactions and, in turn, network fees.

Much of this spike in activity was tied to the Oscars. Traders flocked to Polymarket to speculate on major categories like Best Picture, Best Actor, and Best Director. Every trade required a blockchain transaction, which quickly pushed up Polygon’s total daily fees. The Oscars became more than just a Hollywood event. They turned into a high-volume crypto trading catalyst.

As trading volume increased, so did the number of interactions with smart contracts on Polygon. Smart contracts are self-executing programs that run on blockchains. Every interaction requires gas fees, which are small payments users make to process transactions. When usage spikes, total fees climb quickly.

Reports indicate that Polymarket’s rapid growth pushed Polygon’s daily fee revenue above Ethereum’s for the period measured. This is notable because Ethereum typically generates significantly higher fee income due to its larger ecosystem.

Why does this matter?

First, it shows how a single high-demand application can dramatically impact a network’s revenue. Polygon has long positioned itself as a faster and cheaper alternative to Ethereum. Lower fees usually attract users, but in this case, high usage still translated into meaningful fee generation.

Second, it highlights the growing power of prediction markets in crypto. Polymarket’s activity suggests strong user appetite for event-based trading. That kind of demand can rival traditional DeFi use cases, at least temporarily.

For Ethereum, the flip is not necessarily a long-term threat. Ethereum still leads in total value locked and developer activity. But short-term fee leadership by Polygon underscores how competitive the layer-2 and scaling ecosystem has become.

This article is not financial advice. Cryptocurrency investments involve risk, and prices may fluctuate significantly. Always conduct your own research. Gambling involves financial risk and may not be suitable for everyone. Please play responsibly and seek help if gambling becomes a problem.

Author

Mateo Journalist

Mateo’s interest in journalism began at his school newspaper, where he decided to pursue it as a career. After graduating, he started covering news in the iGaming and betting industry and has been doing so professionally for the past two years. When he’s not working, Mateo can usually be found on the tennis or badminton court.

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