- Arbitrum has risen above Polygon to become the most dominant L2.
- MATIC has dropped below $1 while ARB has maintained it.
Polygon [MATIC] was once considered one of the most, if not the most, popular Layer 2 (L2) networks. However, in recent times, recently launched L2 network Arbitrum [ARB] has gained significant prominence.
How does Arbitrum compare to Polygon?
Comparing the volume and TVL of Polygon and Arbitrum
An analysis of Polygon’s volume trajectory on DefiLlama indicated an uptrend at press time. Towards the end of December, it reached its second-highest volume of the year, approximately $435 million.
2023’s peak volume occurred in March, reaching around $669 million. Notably, Polygon’s volume surpassed $1 billion only once in 2021, exceeding $2 billion. As of this writing, its volume was around $106 million.
Source: DefiLlama
Examining the Total Value Locked (TVL), there has been an overall decline for Polygon in recent weeks, with the TVL at around $845 million at present. Conversely, Arbitrum’s TVL was over $2 billion, showing an upward trend in the past few weeks.
In the last 24 hours, Arbitrum’s volume was over $405 million. Notably, in the new year, Arbitrum’s volume has surpassed $1.8 billion twice.
Source: Defillama
The L2 conversation
According to data analyzed by AMBCrypto via L2 Beats, Arbitrum stood as the most dominant Layer 2 (L2) network at press time.
During this time, Arbitrum commanded nearly 50% of the market share, boasting a total value locked (TVL) of over $9.8 billion.
In stark contrast, Polygon ranked 12th with a comparatively modest $111 million, holding less than 1% of the market share.
This data underscored a significant shift in the L2 landscape, signaling that other networks have moved past Polygon.
Not only were these alternative L2 networks generating higher volumes, but they were also attracting a larger user base, as indicated by their growing market shares.
MATIC follows market trends as ARB detaches
AMBCrypto’s examination of Polygon’s daily timeframe chart showed the impact of the recent market movement on its price.
On the 3rd of January, Polygon experienced a significant price crash of around 11.8%, and since then, it has struggled to recover. Before the crash, its trading price was around $1, but as of this writing, it has declined to around $0.8.
Source: Trading View
Realistic or not, here’s ARB’s market cap in MATIC’s terms
In contrast, Arbitrum demonstrated a different trend during the market crash. Despite the broader market downturn, Arbitrum gained over 8%. However, it faced a decline recently, losing over 2% and more than 10% on the 5th of January.
As of this writing, it was showing a gain of almost 5%, with a trading price of around $1.8.
Source: Trading View