Polygon Outperforms Ethereum on Fees, Demand Rises as Prediction Markets Drive Activity

Polygon's daily transaction fees briefly exceeded Ethereum's for the first time on February 14, 2026. The surge was driven by high user activity on the prediction market Polymarket. On that day, Polygon earned $407,100 in fees, while Ethereum recorded $211,700 according to CoinTelegraph.

The spike in fees on Polygon was attributed to the platform's low-cost structure and increased retail engagement in betting activities. Polymarket's user base wagered over $15 million in a single Oscars market category, significantly boosting Polygon's network activity.

Despite the gap narrowing in subsequent days, the rise in Polygon's fees reflects growing adoption of low-cost, high-volume blockchain networks. Analysts point to Polymarket as the main driver of this trend, with the platform generating over $1 million in fees on Polygon over the previous seven days.

Why Did This Happen?

The rise in Polygon's fees is primarily attributed to Polymarket's user base engaging in high-volume, low-cost transactions. Prediction markets allow users to bet on outcomes of events, which generates significant on-chain activity. With Polygon's average transaction fees at about $0.0026 compared to Ethereum's $1.68, users are increasingly choosing the former for its cost-effectiveness.

Polygon's Layer 2 architecture makes it an attractive alternative for applications requiring frequent, low-cost transactions. Polymarket's use of the network highlights how Layer 2 solutions are becoming integral to blockchain scalability and user adoption.

What Analysts Are Watching

Analysts are closely monitoring whether the surge in fees on Polygon is a short-term spike or a sign of broader adoption. Matthias Seidl of Ethereum analytics firm growthepie noted that Polygon's recent activity is "fully driven by Polymarket," indicating the platform's role as a key use case for the network.

Polygon's institutional partnerships are also drawing attention. The platform recently joined the Enterprise Ethereum Alliance (EEA) alongside Ethena and Nethermind. The move underscores Ethereum's expanding role in institutional infrastructure and regulated environments.

What This Means for Investors

Investors are evaluating how Polygon's performance could influence the broader Ethereum ecosystem. With Ethereum's market dominance still intact, the ability of Layer 2 solutions to handle high volumes at low costs could reshape blockchain use cases and investment strategies.

Polygon's ability to capture a significant share of prediction market activity signals potential for continued growth. The network's recent acquisition of Coinme and Sequence for over $250 million further supports its expansion into regulated financial services.

The recent surge in Polygon's fees also highlights the importance of transaction cost efficiency in user adoption. As applications like Polymarket continue to grow, the demand for low-cost, high-performance networks may rise, favoring platforms like Polygon.