By Aliyu Pokima – January 22, 2023 1072 Share TwitterReddItTelegramWhatsApp
- Recent data shows an astonishing growth of users and transactions among Ethereum’s growing list of layer 2 networks.
- Polygon, Optimism, and Arbitrum have recorded increased daily user activity by 30%, 180%, and 40%, respectively.
- Polygon has been tipped for massive successes this year with several network upgrades and more web3 projects before Q2 2023.
The importance of Layer 2 solutions is becoming much more glaring as web3 adoption continues to grow, paving the way for developers to launch without compromising speed for scalability.
Layer 2 solutions have recorded a significant rise in the past three months in major metrics, including daily users, transaction volumes, and increased network fees. According to a report by blockchain analysis provider Token Terminal, the amount of assets locked in these networks is also rising.
Data from Token Terminal shows that Polygon has seen a surge in daily users since Oct 2022. As of October, daily users stood at 313,400 a figure that has nearly doubled to over 600,000 daily users. The increased transaction has led to nearly $55,000 in daily network fees for Polygon.
According to the data, Arbitrum One has grown by 40% and now has 41,695 daily users making daily fees over $40,000. Arbitrum also dominates the market share in terms of total value locked (TVL) on its network. TVL on Arbitrum is at $2.5 billion, accounting for 52% of the total assets locked on Ethereum’s layer 2 platforms.
Optimism has recorded gains of over 180% in daily network fees, which is a significantly higher increase than Polygon. The last three months have also seen daily users on Optimism spike by 190%. TVL on Optimism currently stands at $1.46 billion with a market share of 30%.
Polygon’s developers are working round the clock
Among layer 2 networks, Polygon is tipped to have a more robust development in 2023. The network’s recent hard fork, which will reduce gas fees and improve its overall performance, can be described as an early sign of future developments.
Multiple projects are also set to migrate to Polygon from rival networks, including Solana’s yOOTs. Polygon has partnered with Xternity to migrate Synergy Land, a web3 game, from Solana. Last week Mastercard announced a partnership with Polygon as it launched its web3 musician accelerator program aimed at helping artists build their brands leveraging on web3.
Polygon climbed back into the top 10 cryptocurrencies by market capitalization after it was pushed out briefly by Solana this week.