Optimism (OP), Polygon (MATIC) or Arbitrum: Which Ethereum L2 Is Dominant?

Cryptocurrency analyst DeFi Mochi compared the key indicators of Optimism (OP), Polygon Network (MATIC) and Arbitrum to find out who is actually using these second-layer solutions.

Polygon Network (MATIC) usage spiked in Q4, 2022, thanks to this catalyst

DeFi Mochi took to Twitter to share the analysis of network activity on Ethereum (ETH) second-layer solutions, including Polygon Network (MATIC), Optimism (OP) and Arbitrum. The researcher used on-chain data from Dune Analytics custom-made dashboards.

With the coming of Shanghai and the sudden run up of tokens and LSDs, an obvious narrative for 2023 is @ethereum Layer 2s.

Who is winning the L2 wars and what does on chain wallet and transaction data tell us? I crunch data with @DuneAnalytics 📊 to help you find out!

👇
0/18 pic.twitter.com/tto3JAa0n2

— Defi_Mochi (🍡, 📊) (@defi_mochi) January 14, 2023

All L2 networks witnessed a massive inflow of users after the collapse of the FTX exchange in November as more traders decided to migrate to the decentralized futures trading platform GMX.

While Polygon (MATIC) is still the leader when it comes to daily transactions, Optimism (OP) managed to quadruple its ERC-20 transfers market share in the last three months. It siphoned a part of Arbitrum's activity.

Related

Tue, 10/25/2022 - 15:35

Reddit NFTs on Polygon Spike 1,113% in Trading Volume as Millions Rush to Participate

Gamza Khanzadaev

Thanks to its NFT-centric partnership with Reddit, Polygon (MATIC) is the undisputed leader of ERC-721 transactions. Out of 13 million Polygon (MATIC) wallets with NFTs, 4 million took part in this collaboration.

Arbitrum is whale-dominated, while Optimism (OP) approaches Bedrock

Meanwhile, Optimism has a higher number of wallets with ERC-20 balances: over 789,000 crypto enthusiasts use it for transfers of Ethereum-based tokens.

Analysts also noticed that Arbitrum remains a beloved network of whales (wallets with over $100,000 in equivalent). A total of 3,968 large wallets on Arbitrum are in charge of its 25% funds.

Also, Arbitrum demonstrated the most impressive growth in total value locked (TVL), a crucial DeFi metric. While Polygon (MATIC) and Optimism (OP) are lagging, things can change with the Bedrock upgrade activation on Optimism.