Particularly in protocols linked to the Ethereum ecosystem, where a noteworthy rise in total user count has been noted, the scene of digital currencies is changing. Co-founder of Polygon Mihailo Bjelic released an update showing that overall Monthly Active Users (MAU) of the layer-2 scaling solution exceeded Ethereum.
ETH is slowing down in development relative to these secondary protocols even if it is still the fundamental network for layer-2 scaling solutions. Data from Bjelic indicates that Polygon’s MAU has topped eight million while Ethereum’s count still falls short of this level.
Polygon’s Growth Drives Ethereum
Users’ move to Polygon is motivated by factors like the recent Dencun Upgrade, which cut costs and increases the protocol’s attractiveness. As Ethereum develops, the improvement of its Layer-2 solutions presents consumers more chances to interact with the Decentralized Finance (DeFi) network.
Offering better speed, scalability, and reduced gas costs, protocols like Base and Optimism (OP) are also causing major network improvements to suit more consumers. Users looking at NFTs, gaming, and other Web3 ecosystem advances could find these Layer-2 protocols to be quite appealing.
Layer-2 protocols and their related tokens remain tightly linked with ETH and are impacted by its unfavorable trend even though they outperform ETH in important criteria.
Ethereum is trading at $3,527.53 at the time of publication, a 4% decline in the past 24 hours shown in Trading at $0.6360, $0.9354, and $2.124, this declining trend also affects L2 tokens including MATIC, Arbitrum (ARB), and Optimism, which have seen decreases of 1.74%, 2.44%, and 1.6% respectively.
Particularly considering the possible release of the spot ETH ETF product, the Ethereum ecosystem is about to undergo transformation. The launch of this product could bring these tokens and others connected to the ETH ecosystem a positive boost.
