The crypto analyst DeFi Mochi recently compared the usage and key indicators of three popular second-layer solutions on Ethereum: Optimism (OP), Polygon Network (MATIC), and Arbitrum. The analysis was conducted using on-chain data from custom-made dashboards on Dune Analytics. The comparison revealed interesting insights into the user activity and trends on these networks.
In the last quarter of 2022, the usage of Polygon Network (MATIC) experienced a significant spike, attributed to a catalyst that drove more users to the platform. DeFi Mochi took to Twitter to share their findings and shed light on the network activity levels on Ethereum’s second-layer solutions. The analysis aimed to determine who was leading the L2 wars and what the on-chain wallet and transaction data revealed about user behavior.
Following the collapse of the FTX exchange in November, all three L2 networks observed a surge in user inflow as more traders decided to migrate to the decentralized futures trading platform GMX. Despite Polygon (MATIC) maintaining its position as the leader in daily transactions, Optimism (OP) saw a quadruple increase in its ERC-20 transfers market share over the last three months, overtaking a portion of Arbitrum’s activity.
One of the key findings of the analysis was the NFT-centric partnership between Polygon (MATIC) and Reddit, which solidified Polygon’s position as the leader in ERC-721 transactions. Out of the 13 million Polygon (MATIC) wallets holding NFTs, an impressive 4 million actively participated in this collaboration. On the other hand, Arbitrum was noted to be dominated by whales, with a significant number of large wallets controlling a substantial portion of its funds.
Optimism (OP) emerged as a network with a higher number of wallets holding ERC-20 balances, with over 789,000 users utilizing the platform for transfers of Ethereum-based tokens. Despite this, Arbitrum continued to attract high-value users, with 3,968 large wallets holding over $100,000 in funds accounting for 25% of the total value locked on the network. Additionally, Arbitrum demonstrated remarkable growth in total value locked (TVL), a critical DeFi metric, outpacing both Polygon (MATIC) and Optimism (OP).
Looking ahead, the activation of the Bedrock upgrade on Optimism could potentially shift the dynamics of the L2 landscape, as it has the potential to bring about significant changes in the network’s performance and user adoption. As the competition amongst second-layer solutions intensifies, it will be interesting to see how these networks evolve and adapt to the changing demands of the crypto market. Stay tuned for more updates on the latest trends and developments in the world of decentralized finance.
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