Arbitrum

Polygon

View

<ul> 
 <li>Arbitrum has risen above Polygon to become the most dominant L2.</li> 
 <li>MATIC has dropped below $1 while ARB has maintained it.</li> 
</ul> 
<a href="https://ambcrypto.com/search/polygon" target="_blank" rel="noopener" data-wpel-link="internal">Polygon [MATIC]</a> was once considered one of the most, if not the most, popular Layer 2 (L2) networks. However, in recent times, recently launched L2 network <a href="https://ambcrypto.com/search/Arbitrum" target="_blank" rel="noopener" data-wpel-link="internal">Arbitrum [ARB]</a>&nbsp;has gained significant prominence. 
How does Arbitrum compare to Polygon? 
<h4>Comparing the volume and TVL of Polygon and Arbitrum</h4> 
An analysis of <a href="https://ambcrypto.com/polygon-can-high-network-activity-push-matic-north/" target="_blank" rel="noopener" data-wpel-link="internal">Polygon’s</a> volume trajectory on <a href="https://defillama.com/chain/Polygon?volume=true" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">DefiLlama</a> indicated an uptrend at press time. Towards the end of December, it reached its second-highest volume of the year, approximately $435 million. 
2023’s peak volume occurred in March, reaching around $669 million. Notably, Polygon’s volume surpassed $1 billion only once in 2021, exceeding $2 billion. As of this writing, its volume was around $106 million. 
<div id="attachment_362539" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-362539" decoding="async" class="size-full wp-image-362539" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1.png" alt="Polygon TVL and Volume" width="874" height="540" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1.png 874w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1-300x185.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1-768x475.png 768w" sizes="(max-width: 874px) 100vw, 874px"></a>
 Source: DefiLlama
</div> 
Examining the Total Value Locked (TVL), there has been an overall decline for Polygon in recent weeks, with the TVL at around $845 million at present. Conversely, <a href="https://ambcrypto.com/arbitrums-dominance-soars-as-these-metrics-break-barriers/" target="_blank" rel="noopener" data-wpel-link="internal">Arbitrum’s</a> TVL was over $2 billion, showing an upward trend in the past few weeks. 
In the last 24 hours, Arbitrum’s volume was over $405 million. Notably, in the new year, Arbitrum’s volume has surpassed $1.8 billion twice. 
<div id="attachment_362540" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1-1.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-362540" decoding="async" class="size-full wp-image-362540" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1-1.png" alt="Arbitrum TVL and Volume" width="874" height="540" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1-1.png 874w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1-1-300x185.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/download-1-1-768x475.png 768w" sizes="(max-width: 874px) 100vw, 874px"></a>
 Source: Defillama
</div> 
<h4>The L2 conversation&nbsp;</h4> 
According to data analyzed by AMBCrypto via <a href="https://l2beat.com/scaling/summary" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">L2 Beats</a>, <a href="https://ambcrypto.com/vitalik-buterin-lauds-arbitrum-arb-rallies-22-in-24-hours/" target="_blank" rel="noopener" data-wpel-link="internal">Arbitrum</a> stood as the most dominant Layer 2 (L2) network at press time. 
During this time, Arbitrum commanded nearly 50% of the market share, boasting a total value locked (TVL) of over $9.8 billion. 
In stark contrast, Polygon ranked 12th with a comparatively modest $111 million, holding less than 1% of the market share. 
This data underscored a significant shift in the L2 landscape, signaling that other networks have moved past <a href="https://ambcrypto.com/can-polygon-zkevm-replicate-2023s-success-in-2024/" target="_blank" rel="noopener" data-wpel-link="internal">Polygon</a>. 
Not only were these alternative L2 networks generating higher volumes, but they were also attracting a larger user base, as indicated by their growing market shares. 
<h4>MATIC follows market trends as ARB detaches</h4> 
AMBCrypto’s examination of Polygon’s daily timeframe chart showed the impact of the recent market movement on its price. 
On the 3rd of January, Polygon experienced a significant price crash of around 11.8%, and since then, it has struggled to recover. Before the crash, its trading price was around $1, but as of this writing, it has declined to around $0.8. 
<div id="attachment_362541" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MATICUSD_2024-01-07_13-30-39.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-362541" decoding="async" class="size-full wp-image-362541" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MATICUSD_2024-01-07_13-30-39.png" alt="MATIC/USD price trend" width="1491" height="785" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MATICUSD_2024-01-07_13-30-39.png 1491w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MATICUSD_2024-01-07_13-30-39-300x158.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MATICUSD_2024-01-07_13-30-39-1024x539.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MATICUSD_2024-01-07_13-30-39-768x404.png 768w" sizes="(max-width: 1491px) 100vw, 1491px"></a>
 Source: Trading View
</div> 
Realistic or not, here’s&nbsp;<a href="https://ambcrypto.com/calculator/marketcap" target="_blank" rel="noopener" data-wpel-link="internal">ARB’s market cap in MATIC’s terms</a> 
In contrast, Arbitrum demonstrated a different trend during the market crash. Despite the broader market downturn, Arbitrum gained over 8%. However, it faced a decline recently, losing over 2% and more than 10% on the 5th of January. 
As of this writing, it was showing a gain of almost 5%, with a trading price of around $1.8. 
<div id="attachment_362542" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/ARBUSD_2024-01-07_13-34-33.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-362542" decoding="async" class="size-full wp-image-362542" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/ARBUSD_2024-01-07_13-34-33.png" alt="ARB/USD price trend" width="1491" height="785" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/ARBUSD_2024-01-07_13-34-33.png 1491w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/ARBUSD_2024-01-07_13-34-33-300x158.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/ARBUSD_2024-01-07_13-34-33-1024x539.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/ARBUSD_2024-01-07_13-34-33-768x404.png 768w" sizes="(max-width: 1491px) 100vw, 1491px"></a>
 Source: Trading View
</div>

Arbitrum v. Polygon: Is the L2 game changing now?

AMBCrypto

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