Polymarket's Popularity Grows, But Where Are the Profits for Polygon?
TL;DR
- Polymarket has attracted nearly £2.4 billion in bets for the U.S. presidential election but generated only about £27,000 in transaction fees for the Polygon PoS network in 2024.
- Despite user engagement, the platform's low fee generation raises questions about its financial impact on the Polygon ecosystem, especially for £POL token holders.
Polymarket has emerged as a notable success on the Polygon blockchain, engaging users with bets on various topics, including the U.S. presidential election. However, despite nearly £2.4 billion wagered, the platform has generated only about £27,000 in transaction fees this year, highlighting a disconnect between user activity and revenue.
The low fee generation is attributed to the platform's minimal transaction costs and lower volume compared to high-traffic applications like decentralized exchanges (DEXs). In October, Polymarket accounted for about 5.2% of transactions on the Polygon PoS chain, but its transaction volume remains insufficient to significantly impact the network's revenue.
Polygon Labs CEO Marc Boiron noted that while Polymarket's user engagement is promising, the nature of its transactions means it is unlikely to generate substantial fees unless user numbers increase dramatically. Nonetheless, the attention garnered by Polymarket is viewed as a positive development for the broader Polygon ecosystem.
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