Polymarket Drives Polygon to $1.7M in Fees: How 15-Minute Markets Are Reshaping Layer-2 Activity

Source: CryptoNewsNet Original Title: Polymarket lifts Polygon to $1.7M in January fees Original Link: https://cryptonews.net/news/blockchain/32269786/

Market Activity Surge

Polymarket’s 15-minute market, which allows users to bet on short-term “up or down” price movements for major cryptocurrencies, has triggered a surge in activity on the Polygon blockchain, driving significant network fees.

These markets are known to resolve every 15 minutes based on Chainlink price feeds, making them fast-paced and attractive to high-frequency traders and arbitrage strategies.

According to Castle Labs, Polygon has seen explosive growth this year. Since the year began, the chain has reportedly generated over $1.7 million in fees and burned 12.5 million+ POL, over $1.5 million.

Fee Generation Catalyst

The main reason for the increase in Polygon’s fee generation has been linked to a move Polymarket effected, which saw it turn on fees for its 15-minute markets one week ago. According to a report from Castle Labs, the past 24 hours have seen Polymarket make over $100,000 in fees for Polygon.

The fees Polymarket turned on for its 15-minute market also triggered a surge in gas prices; however, that has been managed with the Dandeli hardfork that went live at block 81,424,000, increasing the chain’s throughput to 20 mgas/s.

The increased chain capacity is expected to ensure the network is able to handle the surge in activity with more predictable gas prices. An analysis of the P2P volumes across chains has shown Polygon now leads in the micropayments category, with 37% of market share.

However, the share still converges towards Ethereum for the other categories, including the small, medium, and large payments.

Polygon’s Strategic Vision

Building on the present hype, Polygon plans to partner with providers such as Revolut, Stripe, Flutterwave, Decard, and more to boost stablecoin transactions and onchain economic activity.

This is all reportedly part of Polygon’s Open Money Stack, which targets more onchain applications of money and easier spending, so off-ramping will be an option, rather than a necessity.

As the chain continues to evolve and build use cases outside of crypto, and the Polygon thesis plays out with Agglayer and Open Money Stack, more sources like Polymarket are expected to contribute even more to the chain’s growth.

Understanding the Open Money Stack

According to Polygon Lab’s CEO Marc Boiron, Polygon’s Open Money Stack is a comprehensive ecosystem that is designed to help the world’s financial system transition entirely onchain.

The framework points out that even though the Internet has freed information, monetary transactions are still largely restricted by geography, time and infrastructure. Polygon is looking to change that by making money movement “boundless and programmatic,” shifting from a slow, expensive legacy system to one that is more rapid and reliable.

The Open Money Stack is an integrated suite of technologies designed to make the blockchain invisible to the end user and will be characterized by:

• High-performance blockchain rails
• Simplified on and off ramps paired with cross-chain interoperability
• Robust wallet infrastructure
• Onchain utility like high yield opportunities

The timeline for the total migration could be a decade, but Polygon is convinced the protocols that will define this category will be established in the next three years.

In the coming weeks, Polygon Labs has plans to launch several initiatives that will focus on payments, compliance and onchain money primitives to move the execution forward from vision to execution.