NFT sales volume by blockchain via Cryptoslam
- Low transaction fees
- High transaction volume
- Fast transaction speeds
- Low transaction value
- Low liquidity
- High transaction value
- High volume
Is it better to use Polygon or Ethereum?
If you are launching a small collection of under 5,000 it may be a good idea to go with Ethereum as there is more transactional volume and also a higher average transaction value so you collection potentially has a higher chance of succeeding since there is more liquidity and also people willing to pay higher prices for NFTs than they are on Polygon.
On the other hand if you are launching a large collection of 5-10k you may be better off to launch with Polygon as this would be much cheaper to launch due to the low transaction fees. Polygon NFTs can have more transactions and sales due to the lower transaction fees which in turn can generate you more royalties as the project owner.
Is minting free on Polygon?
Minting NFTs on Polygon still requieres you to pay gas fees however they are much cheaper than Ethereums. While Ethereums gas fess can range anywhere from $10 right up to the hundreds Polygons transaction fees are generally around $0.2 per transaction.
What is Polygon?
Polygon is a layer 2 network that was built to run alongside Ethereum as a side chain. Polygon was built to help Ethereums gas fee problems and scalability issues by taking a load of the traffic of Ethereum and running it through Polygon.
Polygon does this by using the proof of stake consensus while Ethereum uses proof of work. In layman’s terms Ethereum uses miners which charge a high price to push through transactions while polygons doesn’t. This allows for Polygon to have much lower gas fees than the current Ethereum does.
With scalability being such a huge problem on Ethereum causing massive spikes in gas fees Polygon was built to minimize this. To properly combat this Polygon has to be reliable and able to handle all the traffic that gets placed on it. In the past 12 months Polygon has had minimal downtime with only one major occurrence in March when Polygon was down for 11 hours. All users’ funds were safe.
Polygon Transaction Fees
Polygon fees can range from anywhere between $0.0001 to $0.2 per transaction. This is much cheaper than Ethereum where the gas fees can range from $8 right up to $100 per transaction. This paints a clear picture on which chain offers cheaper transaction fees.
This makes for a much cheaper cost when launching an NFT collection.
What is Ethereum?
Ethereum is a decentralized layer 1 blockchain that offers decentralization and a stable network to build dApps, smart contracts and more on. Ethereum is the second largest Cryptocurrency by market cap being beaten only by Bitcoin.
Ethereum runs on a proof of work consensus which means miners mine the transactions and take a fee in return. This is what causes the high gas fees or “gas wars” due to the high volume of transactions being made every second and the lower number of miners, users sending transactions often have to “fight” to get their transaction accepted by a miner. Hence paying a higher gas fee to get their transaction at the front of the line.
Ethereum Transaction Fees
Due to Ethereum running proof of work rather than proof of stake transaction fees can get as high as hundred of dollars, especially when the network is very busy. Hyped NFT projects often cause the gas fees to spike huge amounts resulting in a “gas war” as each user trying to mint an NFT is bidding more and more trying to get their transaction at the front of the line.
High transaction fees would be the number reason for you to mint on Polygon rather than Ethereum as these transaction fees make it a lot more expensive for you to launch on Ethereum and also deters some users from participating in mints.
Ethereums Decentralization, Scalability & Familiarity
One of the biggest benefits Ethereum boasts is its decentralization. One of the big reasons people get into Crypto and NFTs is for the decentralization so this can be a fairly important factor when choosing which blockchain to launch your NFT collection.
Ethereums scalability is an area the developers are still actively working on. As you can see by the gas wars that happen especially around hyped mints the blockchain still needs some work and is unfortunately struggling with its scalability.
Familiarity is an important factor to take into account when deciding between Ethereum and Polygon. Most crypto and NFT participants are familiar with Ethereum and how it works, building a sort of trust when they see your collection on Ethereum.
Polygon on the other hand is still fairly small regardless of the large marketcap. A lot of users have never used it and might not be sure how to use it hence turning them away from your collection.
Both Ethereum and Polygon have their pros and cons.
To sum it up Ethereum has more volume and familiarity while Polygon boasts cheap transaction fees. I have also written an article on the costs of launching an NFT project on Solana and Ethereum which may be worth reading.
If you are still deciding whether to launch on Ethereum or Polygon maybe take the time to look into Solana as well.
If you have a big budget and experience Ethereum may be your go to. While if you have a smaller budget and are just getting started in the world of NFTs it may be worth having a tinker on Polygon or Solana first.