Try Quests to earn cryptoEVM - 6. Continued Growth?
As noted in a recent piece in Cointelegraph, “Ethereum layer-2 networks, such as Polygon, Arbitrum, and Optimism, have gone through an explosive growth phase over the past couple of months, a trend that is set to continue in 2023.” Specifically, there’s been a notable increase in the amount of daily active users, volume traded, and more. Will this growth continue into the new year? Or will L2 growth stagnate as 2023 continues to progress? Back up your assertions with data.
🎨 NFT Sales Metrics
It appears that Polygon has been the leader in NFT sales, with the highest number of transactions and the highest active unique buyer count. Meanwhile, the NFT sales transactions on Polygon have increased over time, while they have declined on Arbitrum and Optimism.
It is also noted that the last decade of December was the most user-interactive month for Optimism, likely due to the Galaxy campaign.
🔎 Findings:
The information provided suggests that there has been a higher volume of selling of OP and MATIC tokens compared to buying over the past 3 months. This is indicated by the net volume being negative, with OP token being sold over 7.2 million more than it has been bought, and MATIC being sold over 5 million more than it has been bought. This may indicate that there has been a bearish trend in the market for these tokens. However, it is important to note that this data is based on a limited time frame and other factors such as market conditions and token adoption could also impact token prices.
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✨Introduction
It's hard to predict with certainty if the growth of Ethereum layer-2 networks will continue into the future. However, based on past trends and the current market conditions, it is likely that the growth will continue into the new year.
There are a few factors that suggest that the growth will continue:
Increasing demand for decentralized finance (DeFi) applications: DeFi applications are one of the main use cases for Ethereum layer-2 networks, and the DeFi market has been growing rapidly in recent months. This growth is expected to continue as more people look to decentralized finance as an alternative to traditional finance. Improving scalability and lower transaction costs: Ethereum layer-2 networks offer improved scalability and lower transaction costs compared to the main Ethereum network. As the usage of these networks continues to increase, these benefits will become more apparent, driving further growth. Growing ecosystem: The ecosystem around Ethereum layer-2 networks is growing, with more projects being built on top of these networks and more investment flowing into the space. This growth will likely drive further adoption of these networks. It's important to note that the cryptocurrency market is inherently volatile, and there could be factors that emerge in the future that could impact the growth of Ethereum layer-2 networks. However, based on the current trends, it seems likely that the growth will continue into 2023.
🛠️ Method
In the current dashboard I used fact_token_prices_hourly tables on Flipsidecrypto’s database to find the average price of assessed tokens.
Then by use of core.fact_transactions tables avaluate the transaction metrics in terms of acions for three aforementioned ecosystems. Then tried to track the tranferring metrics by destinations and swaps metrics for OP & MATIC tokens. Three past months was selected to calculation period time and you can change it to your desire period time after log in FS. I have conducted a thorough analysis of the data available on Flipsidecrypto's database to evaluate the performance of Ethereum layer-2 networks such as Polygon, Arbitrum, and Optimism. By analyzing the average price, transactions count, active and new user count, NFT, swaps, and DeFi interactions, as well as transfer volume to centralized exchanges and swap volume to and from L2 tokens, we have gained valuable insights into the growth and usage of these networks.
Having a good understanding of the trends and metrics that are important for these networks can help us make informed predictions about their future growth and potential for success. By continuing to monitor these metrics and staying up-to-date with the latest developments in the Ethereum layer-2 space, we can stay ahead of the curve and make data-driven decisions.
🔥 Price Changes
The charts above show the daily average price of native tokens on Ethereum L2 networks:
Besides of that tokens I brought some tokens on optimism like VELO & SNX, and whereas the Arbitrum has not native token I chose the MAGIC as of the Arbitrum’s chain selected token.
As of chart above right, can be seen the MAGIC & OP token have had the most positive price changes in percent.
🎅 Following visuals are deals with New & Active users on each networks
Polygon have allocated to itself, the most New & Active users in total over past 3 ,pmths, respectively.
Although, the most daily transactions have executed on Polygon chain, Arbitrum and Optimism have had the lowest transactions count.
Optimism has generated the most Fees volume ($) since December.
🔎 Findings:
According to the charts above, an increase in the number of new users and transactions on Optimism is visible until late December and the second week of the current month (Jan. 2023), respectively.
During this time in Polygon, there was no significant momentum in terms of new user counts or completed transactions.
🔎 Findings:
The information above have provided shows that both Ethereum L2 networks have experienced an increasing trend in transferring native tokens over the past three months. This highlights the growing interest in these networks and the increased activity of users in transferring assets within these networks. It is important to understand where these tokens are being transferred to provide a comprehensive overview of the ecosystem and its growth. By analyzing the transfer destinations, it may be possible to identify key players and growth areas in the Ethereum L2 space.
🔎 Findings:
The visuals have provided suggests that the majority of transferred native tokens in both Polygon and Optimism networks have been sent to unknown addresses in regular wallets. A small percentage of the tokens have been sent to centralized exchanges, specifically Binance for Polygon. This shows that while some users are utilizing centralized exchanges, the majority of token transfers are occurring within the network itself and not being traded on centralized exchanges. This highlights the growing interest and adoption of decentralized infrastructure within the Ethereum L2 space.
✍️ Conclusion
It's difficult to predict the future with certainty, however, recent data shows that the growth of Ethereum L2 networks, such as Polygon, Arbitrum, and Optimism, has been significant and could continue in the near future. This can be seen through the increase in daily active users, volume traded, and NFT sales transactions.
Polygon has had the most NFT sales transactions and the highest active unique buyer count. Optimism and Arbitrum have had the most Defi interactions and an increase in the number of new users and transactions.
However, it's important to consider various market and technological factors that could impact the growth of these networks in the long term. Further data and analysis should be performed regularly to track any potential changes in the future.
Hey there 👋!
Firstly, I appreciate you sticking with it until the conclusion.
I'm Hamed, a civil engineering Ph.D.
student interested in data analysis.
I've made many similar dashboards and visualizations since I started at Flipside in January.
Please take a look at my various contact details and let me know what you think.
💻 About:
Author: HaM☰d
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💰 Defi Interactions
The visuals below have provided shows that Optimism and Arbitrum have been the leaders in Defi interactions over the past three months.
This growth in Defi interactions is likely due to various campaigns such as Layer3 and Galaxy, as well as user excitement for potential airdrops. Despite a decline in Defi interactions over the past three months, Optimism and Arbitrum still remain the leaders in this sector.
💱 Swaps Metrics have evaluated in the following visuals
The graphs below highlight the dominance of Polygon in the swap market among Ethereum L2 networks. Polygon has had the highest number of swap transactions and the highest active unique swapper count, although this number has declined in the previous three months.