Optimism Grows in Layer 2 Solutions, Flipping Polygon’s Dominance

• Optimism is showing growth in its ERC-20 transactions, potentially flipping Polygon’s dominance in the Layer 2 space.
• Despite the growth in transactions, Polygon still has the majority market share of the Layer 2 solutions.
• Users opting for Optimism have seen a decrease in Ethereum saved, which could impact the number of users on the protocol.

The crypto market has been undergoing turbulence, yet Layer 2 solutions have been showing improvements. Optimism is one such platform that has been exhibiting growth in its transactions. According to Dune Analytics, transactions on Optimism have grown to 1.7 billion, the majority of which are ERC-20 tokens. This growth in ERC-20 transactions could be a sign that Optimism is starting to flip Polygon’s dominance in the Layer 2 space, which currently stands at 2.4 billion transactions.

Despite the growth in Optimism’s transactions, Polygon still has the majority market share of the Layer 2 solutions, occupying 67.9% of the overall market share. This indicates that while Optimism is growing in terms of transaction count, it is not yet attracting as many users as Polygon. Additionally, Ethereum saved by users by opting for Optimism has decreased, which could impact the number of users on the protocol. This could cause users to opt for other Layer 2 solutions that offer better scalability or lower fees.

Optimism is making strides in its growth, but it still has a long way to go before it can match or overtake Polygon’s dominance. The crypto market is ever-evolving, and as new technologies emerge, it will be interesting to see if Optimism can continue to grow and gain more users. The future of Optimism is still uncertain, but its potential for further growth is undeniable.