Ethereum
Polygon outperforms Ethereum in key network metrics
Godfrey Benjamin
Ethereum (ETH) finally compared to Polygon (MATIC) per monthly user
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Digital currencies are increasingly evolving, with protocols linked to the Ethereum ecosystem seeing a significant increase in total users. Taking X, Polygon co-founder Mihailo Bjelic sharing an update that shows that the layer 2 scaling solution has now surpassed Ethereum in terms of total monthly active users (MAU).
Ethereum vs. Layer 2 Networks
Although Ethereum is the foundational network for Layer 2 scaling solutions, it is quickly losing some of its growth to these secondary protocols. According to data shared by Bjelic, Polygon MAU surged to over eight million, while Ethereum’s remained below the eight million level.
The move to Polygon by users is understandable. THE Dencun upgrade has seen a drop in fees which makes the protocol even more endearing. Ethereum is growing, but the evolution of its L2s appears to provide more opportunities for users to better embrace the decentralized finance (DeFi) ecosystem.
Besides Polygon, protocols like Base and Optimism (OP) are also driving a major network shift that can accommodate more users. From performance to scalability to lower gas fees, Layer 2 protocols are now an unrivaled alternative for users looking to explore NFTs, gaming, and other new Web3-centric innovations.
Falling Layer 2 Ecosystem Valuation
Although they outperform Ethereum in several basic metrics, Layer 2 protocols and their associated tokens have a high correlation with ETH. All are carried away in their bearish reign.
At the time of writing, Ethereum is changing hands for $3,527.53, down 4% in the last 24 hours. Following this crisis, L2 tokens, including MATIC, Arbitrum (ARB), and Optimism, are down 1.74%, 2.44%, and 1.6% at $0.6360, $0.9354, and $2.124 , respectively.
The Ethereum ecosystem is currently at the limit, with the potential launch of ETH Spot ETF product. If this product starts trading, it could provide a nice bullish boost for these and other related tokens.
About the Author
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was born when, as a former banker, he discovered the clear advantages of decentralized money over traditional payments. With his extensive experience covering various aspects of Web3, Godfrey’s articles have been featured on Blockchain.news, Cryptonews, and Coingape, among others.