Back to the list

Polygon Outshines Ethereum in Key Network Metric

source-logo  u.today 11 June 2024 14:05, UTC

There is a growing evolution in digital currencies, with protocols linked to the Ethereum ecosystem recording a significant surge in total user count. Taking to X, Polygon cofounder Mihailo Bjelic shared an update that shows the layer-2 scaling solution has now topped 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 fast losing some of its growth traction to these secondary protocols. Per data shared by Bjelic, the Polygon MAU jumped to more than eight million, while that of Ethereum stayed below the eight million level.

MAU (Monthly Active Users) on @0xPolygon surpassed Ethereum.

Probably nothing. https://t.co/bpxIxu7ZcF

— Mihailo Bjelic (@MihailoBjelic) June 11, 2024

The switch to Polygon by users is understandable. The Dencun Upgrade saw a lowering of the fees that further makes the protocol endearing. Ethereum is developing, but the evolution of its L2s appears to be giving users more avenues to embrace the Decentralized Finance (DeFi) ecosystem better.

Besides Polygon, protocols like Base and Optimism (OP) are also spearheading a major network change that can accommodate more users. From performance to scalability and lower gas fees, layer-2 protocols now form an unrivaled alternative for users looking to explore NFTs, gaming and other new Web3-centric innovations.

Layer-2 ecosystem valuation slump

Despite outpacing Ethereum in several core metrics, layer-2 protocols and their associated tokens have a strong correlation to ETH. All are being swept up in their bearish reign.

At the time of writing, Ethereum is changing hands for $3,527.53, down by 4% in the past 24 hours. Following this slump, L2 tokens, including MATIC, Arbitrum (ARB) and Optimism, are down by 1.74%, 2.44% and 1.6% to $0.6360, $0.9354 and $2.124, respectively.

The Ethereum ecosystem is on the edge at the moment, with the prospective launch of the spot ETH ETF product. Should this product start trading, it might spell a good bullish boost for these and other associated tokens.