2 - 3 minute read
According to a recent report by blockchain analysis provider Token Terminal, Ethereum’s growing list of layer 2 networks are experiencing a significant increase in daily users and transactions. Among the networks, Polygon, Optimism, and Arbitrum have recorded the highest growth rates with increases of 30%, 180%, and 40%, respectively.
The importance of Layer 2 solutions is becoming increasingly apparent as web3 adoption continues to grow, allowing developers to launch projects without compromising speed for scalability. The report shows that assets locked in these networks are also rising, with Polygon leading the pack in terms of daily user activity.
Data from Token Terminal shows that Polygon has seen a surge in daily users since October 2022, with the number nearly doubling to over 600,000. This increase in activity has led to nearly $55,000 in daily network fees for the network.
Arbitrum One, another popular Layer 2 solution, has grown by 40% and now has 41,695 daily users, resulting in daily fees of over $40,000. In terms of total value locked (TVL) on its network, Arbitrum dominates the market with $2.5 billion, accounting for 52% of the total assets locked on Ethereum’s layer 2 platforms.
Optimism, meanwhile, has recorded gains of over 180% in daily network fees, with daily users on the network also spiking by 190%. TVL on Optimism currently stands at $1.46 billion, with a market share of 30%.
Polygon is expected to have a particularly robust development in 2023, as the network’s recent hard fork, which will reduce gas fees and improve overall performance, is seen as an early sign of future developments. Additionally, multiple projects are set to migrate to Polygon from rival networks, including Solana’s yOOTs and Synergy Land, a web3 game, which will migrate from Solana with the help of partner Xternity. Last week, Mastercard also announced a partnership with Polygon to launch its web3 musician accelerator program, aimed at helping artists build their brands using web3 technology. As a result of these developments, Polygon has climbed back into the top 10 cryptocurrencies by market capitalization after being briefly pushed out by Solana this week.