|

Ethereum Layer 2 Optimism beats MATIC to the curb, sees massive spike in active addresses

  • Optimism registered a 77% growth in daily active users over the past month, while competitor Polygon noted a decline of 23%. 
  • OP price started a recovery in response to the Bedrock upgrade and rising adoption. 
  • MATIC price is struggling to wipe out its losses since the US SEC labeled the token as a security. 

The competition among Ethereum Layer 2 scaling solutions has intensified after the US Securities and Exchange Commission’s (SEC) crackdown. Polygon network’s MATIC was the largest Layer 2 scaling solution before the SEC labeled the token as a “security.”

Crypto intelligence trackers have recorded a decline in daily user activity on the MATIC network, while Optimism (OP) observed a significant increase. This signals OP is likely dethroning MATIC in terms of daily activity and user adoption.

Also read: Cardano, MATIC and Solana attempt to recover amidst exchange delisting and SEC crackdown

Optimism dethrones MATIC in daily user activity

Based on data from Polkadot Insider, a tracker for crypto activity of several projects, Optimism added 77.1% new daily active users over the past month. In the same timeframe, MATIC suffered a loss of 23.4% daily active users. 

Growth in daily active addresses

Growth in daily active addresses across several blockchains

The declining activity on the MATIC network can be attributed to the Securities and Exchange Commission’s labeling the asset as a security. Since MATIC was tagged as a security, the token suffered delisting from social trading platforms like eToro and exchanges like Robinhood.

During the same time, Optimism released a key technical development, the Bedrock update. The Bedrock upgrade cut deposit confirmation times by 90%, fueling a bullish sentiment among OP users and driving the token’s adoption.

Over the past 30 days, MATIC and OP prices declined nearly 30%. However, Optimism beats MATIC in user activity, signaling a faster recovery in the Layer 2 token rather than Polygon.

Since Monday, OP price has rallied over 6% while MATIC has failed to score gains in the same timeframe.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

XRP consolidates as ETF inflows, rising derivatives interest offset selling pressure
Ripple (XRP) faces sustained selling pressure as bears maintain control on Monday. The remittance token has struggled to break above the $1.10 resistance since last Thursday, as risk sentiment weighs. Demand for XRP derivatives has gradually increased since last week, with the perpetual futures Open Interest (OI) averaging 2.4 billion XRP on Monday, up from 2.13 billion XRP the previous day.
Bitcoin Price Forecast: BTC remains below key 50-day EMA as headwinds from escalating US-Iran conflict offset ETF inflows
Bitcoin (BTC) trades just below its 50-day Exponential Moving Average (EMA) near $65,000 on Monday, a key technical level that could determine its next directional move. Institutional demand via ETFs improved somewhat last week, providing some tailwind for the Crypto King, but the latest round of strikes between the US and Iran has dampened risk appetite.
Crypto Today: Bitcoin, Ethereum, XRP slip as US-Iran escalating hostilities pressure risk assets
Cryptocurrency prices remain under pressure on Monday, as Bitcoin (BTC) falls toward $64,000. Altcoins, including Ethereum (ETH) and Ripple (XRP), uphold a weakening technical structure. ETH is trading sideways between support at $1,826 and resistance at $1,937. Meanwhile, XRP hovers below the pivotal $1.10 level, edging lower toward the primary $1.00 support.
Solana Price Forecast: SOL risks further decline amid weak institutional, retail demand
Solana (SOL) price edges lower on Monday, maintaining a corrective tone from early July. Institutional demand remains muted, with two consecutive weeks of inflows under $1 million, while declining Open Interest and the funding rate point to bearish retail interest, even as trading volume rises by over 70% in 24 hours.
Bitcoin’s potential recovery in the second half hinges on these 4 catalysts
Bitcoin (BTC) has fallen over 34% in the first half of this year as the King Crypto failed to capitalize on a good semester for risk assets despite the woes from the Iran war.