- Arbitrum has risen above Polygon to become the most dominant L2.
- MATIC has fallen 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 considerable notoriety.
How does Arbitrum compare to Polygon?
Comparison of the volume and TVL of Polygon and Arbitrum
An analysis of Polygon’s volume trajectory DefiLlama indicated an upward trend at the time of writing. By the end of December, it reached the second highest volume of the year, about $435 million.
The 2023 peak volume occurred in March and reached approximately $669 million. Notably, Polygon’s volume exceeded $1 billion only once in 2021, amounting to more than $2 billion. At the time of writing, volume was approximately $106 million.
Source: DefiLlama
Examining the Total Value Locked (TVL), there has been a general decline for Polygon in recent weeks, with TVL currently sitting at around $845 million. Conversely, Arbitrum’s TVL was over $2 billion, showing an upward trend in recent weeks.
In the last 24 hours, Arbitrum’s volume exceeded $405 million. Notably, Arbitrum’s volume exceeded $1.8 billion twice in the new year.
Source: Defillama
The L2 conversation
According to data analyzed by AMBCrypto via L2 strokesArbitrum was the most dominant Layer 2 (L2) network at the time of writing.
During this time, Arbitrum held nearly 50% of the market share, with a total value (TVL) of over $9.8 billion.
In stark contrast, Polygon ranked 12th with a relatively modest $111 million, accounting for less than 1% of the market share.
This data underscored a significant shift in the L2 landscape, indicating that other networks have surpassed Polygon.
These alternative L2 networks not only generated higher volumes, but also attracted a larger user base, as evidenced by their growing market shares.
MATIC follows market trends while ARB breaks away
AMBCrypto’s examination of Polygon’s daily timeframe chart showed the impact of the recent market movement on the price.
On January 3, Polygon experienced a significant price crash of around 11.8%, and has struggled to recover since. Before the crash, the trading price was around $1, but at the time of writing it has fallen to around $0.8.
Source: trading view
Realistic or not, here is ARB’s market cap in MATIC terms
Arbitrum, on the other hand, showed a different trend during the market crash. Despite the broader market decline, Arbitrum gained more than 8%. However, the price has recently been confronted with a decline, with a loss of more than 2% and more than 10% on January 5.
At the time of writing, it was showing a gain of almost 5%, with a trading price of around $1.8.
Source: trading view