Polygon leads in EVM efficiency as DeFi users favor low transaction costs

Layer 1 blockchains are underlying networks that directly support various applications on top of the protocols, while layer 2 blockchains operate on top of these foundational layers to enhance scalability and efficiency. Comparing the usage and efficiency of EVM-compatible L1 and L2 blockchains and sidechains can help you better understand the market value and where most of the DeFi activity is coming from.

Dune Analytics data analyzed by CryptoSlate showed that Polygon, a layer 2 sidechain, is a major player in the DeFi ecosystem, closely followed by BNB Chain, an EVM-compatible layer 1 blockchain.

One of the most important metrics when analyzing L1 and L2 is the daily gas usage, or the amount of computation required to perform operations on the blockchain. Gas fees are paid in the native blockchain currency, and high gas usage usually indicates robust network activity. In particular, if the L2 solution maintains high gas usage at low USD costs, it reflects an efficient scaling solution that makes transactions affordable without sacrificing blockchain activity.

Polygon uses an average of 579.97 billion units of natural gas every day, with associated costs of just $65.48 million. That’s an average of only $0.76 per second, despite processing a high volume of 48.37 transactions per second. Each transaction on Polygon costs approximately 138,782 gas units. BNB mainnet also has a high trading volume, but presents a different cost structure, with 454.89 billion units of natural gas used each day and fees of USD 1.02 million per day. The cost per second jumps to $11.81, which is much higher than Polygon. The higher cost per transaction, averaging 108,513 gas units, reflects BNB’s higher computational demands per transaction and suggests that it is a more resource-intensive operation than Polygon.

chain Average natural gas used per day Average USD gas price per day Average number of sends per day Average native gas per transmission Average natural gas used/sec Average USD gas price/sec Average number of sends/sec
polygon mainnet 579.97b $65.48,000 4.18m 138,782 6.71m $0.76 48.37
BNB Mainnet 454.89b $1.02 million 4.06m 108,513 5.26m $11.81 47.03
Arbitrum One 273.96b $250.05,000 1.14 meters 241,207 3.17m $2.89 13.15
base main net 222.37b $378.72,000 1.26m 174,229 2.57m $4.38 14.59
OP mainnet 213.30b $160.26,000 490.83k 429,129 2.47m $1.85 5.68
Gnosis mainnet 109.77b $105,000 182.58k 601,244 1.27m $0.01 2.11
ethereum mainnet 108.14b $12.63 million 1.19 meters 90,758 1.25 meters $146.20 13.79
phantom mainnet 94.86b $489,000 248.93k 372,521 1.10m $0.06 2.88

Arbitrum uses 273.96 billion units of gas every day, costing users $255,000. This equates to him $2.89 per second and 241,207 gas units per transaction. This indicates that it is more cost-effective than BNB but less than Polygon. Base Mainnet recorded a similar trend, with 222.37 billion units and a daily fee of $378,72,000, and a slightly higher cost per second of $4.38 and 174,229 units per transaction.

Ethereum has the biggest cost impact, using 108.14 billion gas units every day and incurring a hefty $12.63 million in fees. The jump in costs to $146.20 per second despite an average of 90,758 gas units per transaction demonstrates Ethereum’s robust security and computational breadth, as well as the scalability challenges that the L2 network seeks to address. is highlighted.

Looking at transaction metrics, Polygon topped the list with 4.02 million transactions, followed by BNB Chain with 3.9 million, according to April 23 data. These numbers demonstrate strong user engagement and network utility, accounting for a 25.8% and 25.1% share of total transactions (excluding known system transactions), respectively.

Graph showing the total number of transactions processed by L1 and L2 networks from January 26, 2024 to April 24, 2024 (Source: dune analysis)

But when you look at transaction fees, a different story emerges. Despite the low number of transactions, Ethereum collected his $7.46 million in fees, which equates to his staggering 83.9% of total fees collected. This discrepancy suggests that although Ethereum processes fewer transactions, its higher transaction costs reflect the status of its primary layer and the intensive computational resources required for its operations.

l1 l2 Transaction feel1 l2 Transaction fee
Graph showing USD equivalent daily transaction fees processed by L1 and L2 networks from January 26, 2024 to April 24, 2024 (Source: dune analysis)

When it comes to DeFi apps, Polygon once again leads the transaction count with 3.3 million app transactions, demonstrating that it is the go-to platform for DeFi activities.

app TXS l1 l2 number of polygonsapp TXS l1 l2 number of polygons
Graph showing the number of app transactions on L1 and L2 blockchains from January 26 to April 24, 2024 (Source: dune analysis)

BNB Chain had 1.22 million trading addresses, while Polygon was slightly behind with 1.18 million. These numbers suggest that other EVM-compatible networks are becoming the preferred platform for regular DeFi users due to their lower cost structure, in contrast to Ethereum’s 402.77k.

L1 L2 transaction addressL1 L2 transaction address
Graph showing the number of trading addresses on L1 and L2 blockchains from January 26 to April 24, 2024 (Source: dune analysis)

Analyzing the performance of these blockchains side by side reveals the struggle between basic security and enhanced scalability. While L1 blockchains like Ethereum continue to secure high-value transactions with hefty fees, scaling solutions like Polygon capture the majority of day-to-day transactions and application interactions. It marks the transition to more efficient and user-friendly blockchain infrastructure in DeFi.

Despite being classified by many as a Layer 2 blockchain, Polygon operates as an L2 sidechain for Ethereum, as it relies on its own set of validators and is not dependent on Ethereum for security. It is important to note that. This allows Polygon to support more experimental activities than a “true” L2 blockchain without impacting Ethereum. Another fact worth mentioning is that although BNB Chain is a Layer 1 blockchain that is compatible with his EVM, it is positioning itself as another L2 competitor in the market rather than another L1, Ethereum. That’s what I’m doing.

⛓️ Top layer 2 crypto assets

See all

mentioned in this article

Related Article

0 Comments

Leave a Comment