# Polymarket Perps Notional trading volume Methodology

## 1. Overview

Notional trading volume measures the total value of derivative contracts executed on Polymarket Perps. Overall trading activity and liquidity within the perpetual futures markets of the platform are represented by this metric. Since trading fees are generated on executed trades, this metric is utilized to analyze the protocol's capacity for fee and revenue generation. All volume calculations are performed using hourly market data and are denominated in USD.

## 2. Data sources

- **Off-chain data**: Hourly kline data from Polymarket Perps API scrapers, covering off-chain reporting

## 3. Step-by-step calculation

### Component A: Hourly volume calculation

- **Purpose**: To calculate the hourly notional trading volume for each perpetual instrument.
- **Logic**: Hourly kline data is retrieved from the Polymarket Perps scraper. For each hourly interval, the average price of the perpetual contract is calculated as the arithmetic mean of the open, high, low, and close prices. The hourly notional trading volume is then determined by multiplying the base asset volume by this calculated average price. To ensure data integrity and handle potential updates, only the most recently inserted record for each unique combination of instrument and hour is retained.
- **Key fields**: `instrument_id`, `open_time`, `open`, `high`, `low`, `close`, `base_volume`

### Component B: Daily aggregation

- **Purpose**: To aggregate the calculated hourly volumes into daily totals.
- **Logic**: The hourly notional trading volumes are truncated to daily intervals based on the open time of each kline. The volumes are then summed across all active perpetual instruments for each day to produce a single daily notional trading volume figure.
- **Key fields**: `open_time`, `notional_trading_volume`

### Component C: Standardization and zero-filling

- **Purpose**: To format the daily volume data for integration into the final metrics pipeline.
- **Logic**: The daily aggregated volumes are mapped to the canonical product identifier for Polymarket Perps and assigned to the off-chain chain identifier. The dataset is cast to standardized data types, and any days with missing data are filled with zero values to maintain a continuous time series. Finally, chain availability filters are applied to align the data with reporting standards.
- **Key fields**: `timestamp`, `product_id`, `chain_id`, `notional_trading_volume`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total USD value of derivative contracts executed on the protocol.

Notional trading volume

Derivative exchanges

Liquidity providers deposit funds into Polymarket and receive trading fees from traders (supply-side fees). Polymarket has also launched a new peer-to-peer order book with no liquidity providers involved.

Polymarket is a non-custodial prediction market protocol built on Polygon. Polymarket was founded by Shayne Coplan and launched in 2020.

Polymarket team & investors own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Polymarket's investors include Polychain, 1Confirmation, ParaFi Capital, etc.

Polymarket Perps

Notional trading volume

Notional trading volume

Chain breakdown