POLYGON: ONE LAYER 2 TO SCALE THEM ALL (PART 1)
June 2, 2022 - 5 min
As of April 26, 2022, over 19,000 dApps had been built on Polygon, up from only 3,000 in November 2021. Moreover, these dApps are not simply a port-over from Ethereum, and Alchemy data shows that 65% of the teams integrated exclusively on Polygon, compared to 35% deployed on Ethereum.
One L2 to scale them all, one L2 to drive them, One L2 to bridge them all, and on the Blockchain bind them; On Polygon where the dApps lie.
What is Polygon?
Polygon is a decentralized Ethereum scaling platform that enables developers to build scalable user-friendly dApps with low transaction fees & high throughput without sacrificing security.
How does it stack up to other L1 chains?
Ethereum, a Layer 1 protocol, is the largest blockchain by Total Value Locked (TVL) which measures the amount of assets (in $ terms) deposited on a particular chain across various DeFi protocols. Scaling $ETH remains one of the key challenges to expanding crypto adoption since current transaction costs (gas fees), make it prohibitive for smaller investors to leverage the dApps deployed in the network. Ethereum has over 400 protocols on its chain, which are the framework/rules on which dApps (for example a Decentralized Exchange) operate. In comparison, Polygon has the 6th largest TVL and hosts 254 protocols (the 3rd highest protocols of any chain). In terms of Marketcap/TVL, a method of price evaluation similar to EV/EBTIDA and P/E ratios, Polygon has a lower Mktcap/TVL ratio than all of the 5 leading chains with the exception of Avalanche ($AVAX).