Optimism emerges as a contender in Layer-2 space: can it overtake Polygon?

• Optimism sees rising ERC-20 transactions, which may flip Polygon’s dominance in L2 area.
• Even so, Polygon maintains consumer market share dominance.

Layer 2 options within the crypto market have been exhibiting enhancements regardless of the market seeing turbulence.

One of many L2 options which have proven nice promise is Optimism. In keeping with Dune Analytics, transactions on Optimism grew considerably over the previous few days.

One of many key areas of development has been the variety of ERC-20 transactions on the platform. ERC-20 is a regular for creating tokens on the Ethereum blockchain and it’s a extensively used commonplace within the crypto trade.

The expansion in ERC-20 transactions on Optimism signifies that extra customers are turning to the platform as a approach to cut back charges on their transactions.

Sensible or not, right here’s OP’s market cap in BTC phrases

A potential flip

This development in transactions on Optimism is also an indication that it’s beginning to flip Polygon’s dominance within the L2 area.

On the time of writing, Optimism’s transactions had been on the 1.7 billion mark whereas Polygon’s transaction depend was at round 2.4 billion.

Though Polygon remains to be forward, the hole between these two values has been decreasing over time, which may very well be an indication that Optimism is catching up.

Supply: Dune Analytics

Nonetheless, by way of consumer market share, Polygon nonetheless displayed dominance because it occupied 67.9% of the general market share. This indicated that though Optimism’s transactions had been rising, it was not but attracting as many customers as Polygon.

Moreover, Ethereum saved by customers by choosing Optimism additionally decreased. This might influence the variety of customers on the Optimism protocol. As customers may go for different Layer 2 options that provide higher scalability or decrease charges.

Supply: Dune Analytics

Nonetheless, Optimism’s Quests NFTs may appeal to extra customers to the protocol. The every day customers and NFTs minted on Optimism have seen a rise, as NFTs have gotten more and more in style within the crypto market.

The token has spoken

Nonetheless, Optimism’s token didn’t garner the identical curiosity from the crypto market

OP, in truth, witnessed a decline in community development. That is indicated by the variety of instances OP was transferred for the primary time amongst new addresses.

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Moreover, the token’s exercise additionally fell. This was showcased by the declining every day lively addresses for the token and the token’s falling velocity. A declining velocity implied that the frequency with which OP was being exchanged amongst addresses decreased.

Supply: Santiment

In conclusion, Optimism‘s development in ERC-20 transactions and NFTs may very well be an indication that it’s beginning to flip Polygon’s dominance within the L2 area. Nonetheless, it nonetheless has an extended approach to go earlier than it may declare to be the main L2 resolution available in the market.