An increase in gas fees doesn’t help a network attract more users.
Polygon network loses users to high gas fees
High gas fees don’t attract users to a network, and Polygon found this out the hard way. The number of transactions on the Ethereum layer 2 aggregator Polygon has dropped significantly over the past few days.
The decline in the number of transactions came following the team’s announcement of an increase in gas fees on the network. According to the Polygonscan blockchain tracker, daily transactions on the network have fallen from over 6 million earlier this month to around 3.2 million as of Oct 11.
Chinese media outlet Wu Blockchain attributed the decline to a recent hike in gas prices on the layer 2 ecosystem. The Ethereum network has been plagued with high gas fees over the past few years, but the developers are working to ensure that the situation is rectified.
After Polygon increased the Gas Price from 1 Gwei to 30 Gwei, the average daily transaction volume on the Internet has nearly halved recently, daily transaction volume has dropped from 6 million to around 3 million. pic.twitter.com/JKToxBhuJU
— Wu Blockchain (@WuBlockchain) October 12, 2021
Spam transactions caused the gas spike
Earlier this month, Polygon co-founder Sandeep Nailwal stated the increase in gas fees was to reduce the number of spam transactions in the network. The team said there would be a minimum gas price hike from 1 to 30 gwei.
The team has come under fire from its community and the broader cryptocurrency space for not conducting a vote on the matter. The team made the decision alone, and that has sparked outrage within its community.
While the increase in gas fees on the Polygon network is bad, it is still cheaper than making a transaction on layer 1 Ethereum. Carrying out transactions on the Layer 1 Ethereum network is very expensive, hence, why many people turn to solutions like Polygon.