When Polygon surpasses Ethereum in daily fee generation, it reflects activity migration — not dominance replacement. Fees are a direct signal of network usage. If Polygon leads temporarily, it usually indicates users are seeking lower-cost execution.
For traders, this is often a rotation trade signal. Short-term capital moves toward ecosystems offering cheaper transactions, particularly during high retail participation periods. However, Ethereum’s core security and liquidity depth remain intact.
The key question isn’t “Is Ethereum dead?” It’s whether this shift is sustainable or incentive-driven. If the spike in fees comes from temporary campaigns or token incentives, the momentum may fade. If it’s organic usage growth, it could signal broader Layer 2 leadership.
This kind of development often strengthens altcoin momentum phases, but traders should differentiate between structural shifts and short-term activity bursts.
