There is a growing evolution in digital currencies, with protocols linked to the Ethereum ecosystem recording a significant increase in the total number of users. Taking X, Polygon co-founder Mihailo Bjelic shared an update showing that the layer 2 scaling solution has now surpassed Ethereum in total monthly active user (MAU) count.
There is a growing evolution in digital currencies, with protocols linked to the Ethereum ecosystem recording a significant increase in the total number of users. Taking X, Polygon co-founder Mihailo Bjelic shared an update showing that the layer 2 scaling solution has now surpassed Ethereum in total monthly active user (MAU) count.
Ethereum versus layer 2 networks
While Ethereum is the foundational network for Layer 2 scaling solutions, it is rapidly losing some of its growth traction to these secondary protocols. According to data shared by Bjelic, Polygon MAU jumped to over eight million, while Ethereum’s remained below the eight million level.
Arman ShirinyanThe switch to Polygon by users is understandable. The Dencun upgrade brought about a reduction in fees that makes the protocol even more attractive. Ethereum is developing, but the evolution of its L2s appears to be giving users more avenues to better adopt the decentralized finance (DeFi) ecosystem.
In addition to Polygon, protocols like Base and Optimism (OP) are also spearheading a major shift in the network that can accommodate more users. From performance to scalability to lower gas fees, Layer 2 protocols now form an unparalleled alternative for users looking to explore NFTs, gaming, and other new Web3-centric innovations.
Layer 2 ecosystem valuation drop
Despite outperforming Ethereum in several major metrics, layer 2 protocols and their associated tokens have a strong correlation with ETH. Everyone is being swept away by his bearish reign.
At the time of writing, Ethereum is changing hands for $3,527.53, down 4% in the last 24 hours. Following this drop, L2 tokens including MATIC, Arbitrum (ARB), and Optimism fell by 1.74%, 2.44%, and 1.6% to $0.6360, $0.9354, and $2.124, respectively.
Alex DovbnyaThe Ethereum ecosystem is on edge right now, with the possible launch of the ETH ETF spot product. If this product starts trading, it could mean good bullish momentum for these and other associated tokens.
