Digital currencies are evolving at an accelerating rate; protocols connected to the Ethereum network have seen a notable increase in the overall number of users. Cofounder of Polygon Mihailo Bjelic posted an update on X, revealing that the layer-2 scaling solution has already eclipsed Ethereum in terms of total Monthly Active Users (MAUs).
Ethereum versus layer-2 networks
Even while Ethereum is the primary network for layer-2 scaling solutions, these alternative protocols are quickly gaining ground on it in terms of growth. According to information released by Bjelic, Ethereum’s MAU remained below eight million, whereas Polygon’s MAU increased to over eight million.
Users’ decision to move to Polygon makes sense. The costs were lowered for the Dencun Upgrade, which adds to the protocol’s charm. Ethereum is still in its infancy, but as it develops, its L2s seem to be providing users with new ways to better integrate with the Decentralised Finance (DeFi) ecosystem.
https://x.com/MihailoBjelic/status/1800458271683473484
Protocols like Base and Optimism (OP), in addition to Polygon, are leading a significant network transformation that can support more users. For customers interested in exploring NFTs, gaming, and other emerging Web3-centric technologies, layer-2 protocols now represent an unmatched option due to their superior performance, scalability, and reduced gas expenses.
Layer-2 ecosystem valuation slump
Layer-2 protocols and the tokens they are connected with have a high association with Ethereum, even though they outperform Ethereum in numerous key criteria. Everyone is becoming engulfed in their gloomy rule.
As of this writing, Ethereum is trading at $3,527.53, a 4% decrease over the previous day. L2 tokens, such as MATIC, Arbitrum (ARB), and Optimism, have dropped 1.6%, 2.44%, and 1.6% to $0.6360, $0.9354, and $2.124, respectively, in the wake of this decline.
With the potential introduction of the spot ETH ETF product, the Ethereum ecosystem is now in a precarious position. Should this product begin trading, these and other related coins may see a positive increase.
