Ethereum’s recent upgrade reshaped competition across Layer-2 networks, as lower base fees forced Polygon [POL] and Arbitrum [ARB] to defend their ecosystem strength.
Both chains now push harder for liquidity, user growth, and deeper economic activity as conditions tighten across DeFi markets.
ARB improved its position through stronger capital depth, while POL secured broader on-chain activity through user-driven engagement.
This liquidity difference shaped protocol traction and general sentiment. However, the competitive landscape remains fluid as each network captures different growth drivers.
Arbitrum continues expanding its liquidity advantage
Arbitrum kept a significant liquidity lead as TVL reached $4.625 billion, far above Polygon’s $1.337 billion.
This difference guided liquidity routing and reinforced deeper execution capacity across Arbitrum’s DeFi ecosystem.
Moreover, stablecoin supply on Arbitrum reached $4.041 billion, surpassing Polygon’s $2.867 billion. Polygon recorded a 1.50% gain in stablecoin flows during the week, while Arbitrum posted a 5.59% drop.
However, Arbitrum still maintained stronger liquidity depth due to its larger base and stronger USDC dominance at 52.25% versus Polygon’s 44.84%.
These combined factors revealed a clear investor preference, although Polygon displayed improving stability within its stablecoin flows.
Source: DefiLlama
Revenue trends strengthen Arbitrum’s overall position
Arbitrum generated stronger chain-level earnings as chain fees reached $25,074, while Polygon captured $17,266. This revenue gap demonstrated greater economic activity across Arbitrum’s liquidity clusters.
Moreover, total chain revenue for Arbitrum reached $48,024 while Polygon recorded $17,266, reinforcing the same trend. App revenue also tilted toward Arbitrum at $265,358 while Polygon showed $234,586.
However, Polygon produced notable app fees at $460,237 despite Arbitrum capturing a much larger $1.3 million.
These metrics revealed strong economic traction across both layers although Arbitrum held the broader financial advantage.
Polygon relied more on frequent interactions, while Arbitrum benefited from deeper capital concentration.
Trader activity accelerates sharply across Arbitrum markets
Arbitrum attracted traders at a faster pace as DEX volume surged to $701.27 million in 24 hours, well above Polygon’s $194.97 million.
Moreover, seven-day trading activity widened the gap as Arbitrum reached $4.066 billion while Polygon settled at $1.318 billion.
Weekly performance strengthened Arbitrum’s dominance, with a 14.47% rise against Polygon’s 9.29% decline.
Arbitrum also secured higher DEX dominance at 3.42% compared to Polygon’s 0.98%. These flows signaled a strong market preference for deeper liquidity.
However, Polygon maintained resilience through persistent user interactions, reinforcing a different type of strength across application-level activity.
Source: DefiLlama
Capital inflows reinforce Arbitrum’s liquidity strength
Arbitrum attracted stronger inflows as $9.16 million moved into the network, outpacing Polygon’s $5.14 million. This difference aligned with broader trading activity and highlighted continued confidence in Arbitrum’s liquidity profile.
Moreover, stronger DEX and derivatives participation created additional momentum across Arbitrum protocols.
Polygon still showed signs of improvement through healthier stablecoin flows and consistent app engagement. However, traders favored environments with deeper liquidity and broader market access, giving Arbitrum a clear advantage.
These inflow patterns now reflect shifting capital strategy among both retail and institutional users, although Polygon continues building traction through its active user base.
Polygon expands its dominance across user activity
Polygon controlled the user landscape as active addresses reached 3.11 million, far ahead of Arbitrum’s 178,536. Moreover, Polygon created 55,169 new addresses in 24 hours while Arbitrum added 22,995.
Transactions reinforced this pattern as Polygon processed 8.35 million transactions while Arbitrum handled 3.79 million. These metrics illustrated stronger retail-driven participation across Polygon’s applications.
However, Arbitrum maintained the advantage in liquidity and trader flow, shaping a different form of market leadership.
Polygon continued thriving through high-frequency activity, while Arbitrum benefited from capital-intensive operations. These contrasting strengths defined the current dynamic within the Layer-2 ecosystem.
To conclude, Arbitrum led decisively in liquidity, revenue, and trader engagement while Polygon dominated user activity, new address creation, and transaction throughput.
The post-upgrade environment now rewards both capital depth and active usage, giving each chain a distinct advantage.
The stronger network depends on whether value leans toward economic concentration or broad ecosystem participation.
Final Thoughts
- Arbitrum’s deeper liquidity and stronger revenue engine position it firmly as the preferred environment for capital-driven activity.
- Polygon’s unmatched user scale reinforces its long-term relevance, proving that adoption strength can rival pure liquidity dominance.