Polygon, a layer 2 network for Ethereum, is expected to have a successful year with a number of network upgrades and more web3 projects before Q2 2023. This prediction is based on recent data that shows an impressive growth in users and transactions among Ethereum’s layer 2 networks.
The significance of layer 2 solutions is becoming increasingly clear as web3 adoption continues to grow. This allows developers to launch their projects without having to sacrifice speed for scalability.
In the past three months, layer 2 solutions have seen significant growth in key metrics such as daily users, transaction volumes, and increased network fees. A report by blockchain analysis provider Token Terminal also indicates that the amount of assets locked in these networks is on the rise.
Data from Token Terminal shows that Polygon has experienced a surge in daily users since October 2022. In October, daily users stood at 313,400, a figure that has nearly doubled to over 600,000 daily users. The increased transactions have led to nearly $55,000 in daily network fees for Polygon.
Arbitrum One has also grown by 40% and now has 41,695 daily users, resulting in daily fees of over $40,000. Arbitrum also holds the largest market share in terms of total value locked (TVL) on its network. The TVL on Arbitrum is currently at $2.5 billion, accounting for 52% of the total assets locked on Ethereum’s layer 2 platforms.
Optimism has seen gains of over 180% in daily network fees, which is a significantly higher increase than Polygon. In the last three months, daily users on Optimism have also spiked by 190%. The TVL on Optimism currently stands at $1.46 billion with a market share of 30%.
Polygon is predicted to have the most robust development in 2023 out of all the layer 2 networks. The network’s recent hard fork, which reduces gas fees and improves overall performance, is seen as an early sign of future developments.
Several projects are also planning to migrate to Polygon from other networks, including Solana’s yOOTs. Polygon has partnered with Xternity to migrate Synergy Land, a web3 game, from Solana. Last week, Mastercard announced a partnership with Polygon as it launched its web3 musician accelerator program aimed at helping artists build their brands using web3.
Polygon has regained its spot in the top 10 cryptocurrencies by market capitalization after being briefly pushed out by Solana this week as a result of these developments.