Polygon Flips Ethereum in Daily Fees for First Time

Key Insights:

• Polygon surpassed Ethereum in daily fees.
• Polymarket drove most network activity growth.
• Stablecoin usage on Polygon also climbed.

Token Terminal data showed Polygon generated over $407,100 in daily transaction fees on Friday, surpassing Ethereum’s $211,700 for the first time. The shift marked a rare reversal in fee leadership between the two networks. The move followed a surge in activity on prediction markets hosted on Polygon.

The Polygon fee surge altered short-term market narratives around Ethereum’s dominance. Polygon operates as a layer-2 scaling solution built on Ethereum, yet it briefly outperformed its base layer in daily fee generation. That dynamic placed fresh attention on Polygon’s transaction throughput and application-level demand.

Fee Surge Followed Concentrated App Activity

Growthepie co-founder Matthias Seidl stated on X that Polygon’s recent activity growth was “fully driven by Polymarket.” His data showed Polymarket generated just over $1 million in fees over the past seven days. The next-largest app, Origin World, produced roughly $130,000 during the same period.

This concentration suggested the spike was not broad-based across decentralized applications. Instead, one prediction market platform fueled the majority of incremental demand. Polygon hosts Polymarket, which launched in 2020 and expanded rapidly during recent election cycles.

Polygon’s team wrote on X that over $15 million in wagers were placed on a single Oscars market category. The post emphasized that Polygon served as the settlement layer beneath those transactions. That activity translated directly into network fees.

The fee gap narrowed the following day. Polygon generated around $303,000 in daily fees on Saturday, while Ethereum recorded about $285,000. The contraction indicated Ethereum retained underlying fee resilience despite the temporary flip.

Stablecoin Flows Added Structural Support

Polygon data analyst Petertherock posted that the network recorded a new weekly high of 28 million USD Coin transactions. Circle issues USD Coin and operates as a dollar-pegged stablecoin. Rising transaction counts suggested broader usage beyond prediction markets.

Stablecoin transfers often indicate settlement and trading activity across decentralized finance platforms. When those transfers increase, fee revenue tends to follow. That relationship appeared visible on Polygon during the recent spike.

Token Terminal’s rolling data showed that average daily fees over the past 30 days remained higher on Ethereum than on Polygon. The short-term inversion did not erase Ethereum’s longer-term lead. However, it demonstrated how application-specific demand can temporarily redirect fee flows.

Builder Incentives and Network Positioning

Prediction markets gained traction following the last U.S. election cycle. Several crypto firms launched competing products as traders sought event-driven exposure. Polymarket became one of the more active platforms in that segment.

Polygon positioned itself as a cost-efficient execution layer for high-frequency microtransactions. Lower transaction costs made it suitable for wagering markets that require rapid settlement. That design likely amplified Polymarket’s impact on total fees.

The network also referenced the deployment of trustless agents to capture opportunities on prediction markets. Automated agents can execute strategies without manual intervention, increasing transaction frequency. Higher transaction frequency directly supports fee generation.

Ethereum, by contrast, continued to rely on base-layer settlement and broader decentralized finance activity. While it retained deeper liquidity pools and validator security, its fee structure remained higher. That cost difference can redirect specific use cases toward layer-2 networks.

The recent flip, therefore, reflected application-driven volume rather than a structural shift in dominance. Polygon’s ecosystem benefited from a concentrated surge. Ethereum maintained diversified revenue sources across decentralized exchanges, lending protocols, and staking activity.

If Polymarket activity sustains elevated volumes, Polygon could retain fee parity in the near term. However, the next test will come as event-driven wagering normalizes. Ethereum’s broader base may reassert itself if prediction market volumes decline.