Optimism sees growing ERC-20 trades, which could flip Polygon’s dominance in L2 space. Still, Polygon maintains user market share dominance.
Tier 2 solutions in the crypto market are showing improvements despite market turbulence.
One of the L2 solutions that has shown promise is Optimism. According to Dune Analytics, transactions on Optimism have grown significantly in recent days.
One of the main areas of growth is the number of ERC-20 transactions on the platform. ERC-20 is a standard for creating tokens on the Ethereum blockchain and it is a widely used standard in the crypto industry.
The growth of ERC-20 trades on Optimism means more users are turning to the platform as a way to lower the cost of their trades.
Realistic or not, here is the market cap of OP in BTC terms
A possible cover
This growth in transactions on Optimism could also be a sign that it is beginning to reverse Polygon’s dominance in the L2 space.
At the time of writing, Optimism’s transactions have crossed the 1.7 billion mark, while Polygon’s transactions have hovered around 2.4 billion.
While Polygon still leads the way, the gap between these two values has narrowed over time, which could be a sign that optimism is catching up.
Source: Dune analysis
However, in terms of user market share, Polygon still showed dominance as it took 67.9% of the total market share. This indicated that while Optimism’s transactions were growing, it was not yet attracting as many users as Polygon.
In addition, the number of Ethereum savings by users also decreased by choosing Optimism. This may affect the number of users of the Optimism protocol. Because users could choose other Layer 2 solutions that offer better scalability or lower costs.
Source: Dune analysis
However, Optimism’s Quests NFTs could attract more users to the protocol. The daily users and NFTs hit on Optimism have seen an increase as NFTs become more and more popular in the crypto market.
The sign has spoken
However, Optimism’s token did not receive the same interest from the crypto market
OP even witnessed a decline in network growth. This is indicated by the number of times OP was first transferred between new addresses.
Is your wallet green? Check out the Optimism Profit Calculator
In addition, the activity of the token also declined. This was demonstrated by the decreasing daily active addresses for the token and the declining speed of the token. A decreasing rate implied that the frequency with which OP was exchanged between addresses decreased.
Source: Sentiment
In conclusion, Optimism’s growth in ERC-20 trades and NFTs may be a sign that it is beginning to reverse Polygon’s dominance in the L2 space. However, it still has a long way to go before it can claim to be the leading L2 solution on the market.
This post Optimism emerges as a contender in Layer-2 space: can it overtake Polygon?
was published first on https://ambcrypto.com/optimism-emerges-as-a-contender-in-layer-2-space-can-it-overtake-polygon/
