Jan 02
Polygon Monthly Report - December 2023
Your monthly recap on everything happening within the Polygon ecosystem!
TL;DR
This summary is AI generated, want to learn more? Read here.
Introduction
The month of December was full of exciting news and growth throughout the Polygon ecosystem. Many of Polygon’s scaling solutions have grown in adoption and many exciting partnerships were announced. In this article, we’ll discuss the latest news and analytics that you don’t want to miss. Let’s dive in!
Biggest News of the Month
Celestia x Polygon
Celestia, a leading data availability solution, is integrating with Polygon's Chain Development Kit to launch ZK-Powered Layer 2 chains on Ethereum. This collaboration simplifies the process of launching high-throughput Layer 2 chains, enhancing blockchain scaling.
Celestia's data availability layer, known for reducing Ethereum Layer 2 transaction fees by over 100 times, will soon be seamlessly integrated into Polygon CDK. Polygon co-founder Sandeep Nailwal describes the integration as a "broadband moment for Web3," emphasizing its potential to transform blockchain adoption. The collaboration enhances the user-friendly approach of Polygon CDK, which is already used by notable projects like OKX, Astar, Canto, Gnosis Pay, Palm, and IDEX.
More Exciting News
FIFA x Polygon
FIFA, the global governing body for soccer, released a limited number of NFTs that will provide holders with the chance to watch the final game of the 2026 World Cup. The first drop included 100 rare digital collectibles offering the opportunity to secure tickets for the World Cup final. An additional 900 digital collectibles were issued on Polygon and available on the OpenSea platform.
FIFA initially minted its NFTs on Algorand but is now shifting to Polygon for future releases. The move aligns with the growing popularity of Polygon in web3 gaming projects. Major brands like FIFA continue to enter the Web3 space, and many continue to choose Polygon as their blockchain of choice.
Merit Circle x Immutable x Polygon
Merit Circle, recognized as the world's largest gaming focused DAO, has revealed a strategic partnership with Immutable. By leveraging Immutable zkEVM, a ZK Layer 2 built using Polygon CDK, Merit Circle DAO intends to enrich the gaming experience for millions of players globally.
Immutable's web3 solutions, including Immutable Orderbook and Immutable Passport, will be integrated into Beam, facilitating increased revenue and liquidity for studios and content creators. This partnership reflects the commitment of both entities to address challenges in mainstream adoption of blockchain technology in gaming.
zkFair Launches on Mainnet
ZKFair has become the first Polygon CDK project to launch on mainnet and integrate with Celestia's data availability solution. To celebrate the ZKFair launch, developers have organized events, including giving USDC to early users and initiating an airdrop of the governance token, ZKF.
The first airdrop, named the "Gas Fee Airdrop," allocated 7.5 billion ZKF tokens to users generating fees on the ZKFair network before reaching the 3 million USDC gas fees milestone. The main goal is to create a fair airdrop for all involved community members.
Fuse Network x Polygon
Fuse Network has announced plans to build a ZK powered Layer 2 solution using the Polygon Chain Development Kit to advance Web3 payments. In collaboration with Polygon Labs, Fuse aims to create an efficient Ethereum based ZK Layer 2 network, leveraging Polygon CDK's scalability, customization, privacy, and Web3 support.
The migration process, expected to take at least 12 months, involves deploying a ZK rollup on Fuse's existing Layer 1, integrating the Layer 1 and Layer 2 to ZK Validium. Once completed, the ZK powered Layer 2 will become Fuse's native network, providing access to major blockchain ecosystems and using the FUSE utility token for gas fees.
Polygon Portal
Polygon Labs has introduced a user friendly and unified interface designed to simplify the management of assets on Polygon chains, allowing seamless bridging to and from Ethereum. It serves as a central hub for accessing native apps that facilitate onboarding onto the Polygon ecosystem.
Developers can leverage Polygon Portal for tools and documentation resources, while validators gain access to staking features. The platform supports bridging via Socket bridge and third-party bridges, asset and token list management, the Refuel Gas feature for purchasing MATIC or ETH for gas on the destination chain, developer tools for building dApps, and easy asset swapping through third party DEXs.
Pundi X x Polygon
Pundi X is leveraging Polygon CDK to develop the Pundi X Chain, its dedicated blockchain for onchain payments. The integration of Polygon CDK brings advantages such as lower transaction fees, faster transaction throughput, and improved security.
Utilizing zero-knowledge proofs, zkEVM enables cost-effective deployment and usage of dApps on the Pundi X Chain. This strategic move highlights Pundi X's commitment to innovation, security, and seamless blockchain network integration, anticipating a significant growth driver for Pundi X Chain.
Analytics
Polygon zkEVM TVL
The Polygon zkEVM continues to see rapid growth as the chain has reached a new all time high in December of $138M TVL. The TVL has increased nearly 30% over the last 30 days and nearly 200% over the last 90 days.
Polygon PoS NFT Volume
Polygon NFTs recorded a massive increase in volume in the month of December. With $45M+ in trading volume, this is the highest monthly volume Polygon has seen since April of 2023.
As many believe the bull market is right around the corner, it is expected to see NFT activity pick up leading into 2024.
Polygon PoS Transactions
The Polygon PoS chain experienced a significant jump in daily transactions over the last month. On average, Polygon PoS averaged over 6M transactions a day in December. The chain also reached an impressive milestone of 3.4B total transactions.
Polygon PoS DEX Volumes
The Polygon PoS chain recorded its highest daily DEX volume since March of this year ($435M) on December 27th. Over the last 30 days, Polygon daily DEX volume has increased over 130% and recorded one of it's highest monthly volumes of all time.
Conclusion
In conclusion, December has been a month marked by significant developments and partnerships within the Polygon ecosystem. Notable collaborations include Celestia integrating with Polygon's Chain Development Kit to launch ZK-Powered Layer 2 chains, FIFA releasing NFTs on Polygon for the 2026 World Cup, and Merit Circle partnering with Immutable to enhance gaming experiences. Analytics revealed substantial growth in both the Polygon zkEVM and PoS chain. Polygon is looking well positioned for continued success as it enters the new year.
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.
