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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?
Method
In this dashboard , we aim to compare various aspects of Optimism, Arbitrum, and Polygon L2s.
We'll gather information on weekly transactions, active users, volumes,fee and transfer for each of the three L2s.
We'll then calculate daily values for each metric and determine the number of active users by considering unique addresses that have been active during the specified time frame. To measure user growth, we'll determine the growth of unique addresses from each L2's starting day.
Our focus will be on a 1 year ago time frame, and we'll analyze the data on a daily basis.
table used :
overall status;
optimism.core.fact_transactions
polygon.core.fact_transactions
arbitrum.core.fact_transactions
for transfer section;
ethereum.core.ez_eth_transfers
SUM(CASE WHEN eth_to_address = LOWER('0xA0c68C638235ee32657e8f720a23ceC1bFc77C77') THEN eth_vol ELSE 0 END) AS eth_polygon_vol, SUM(CASE WHEN eth_to_address = LOWER('0x99C9fc46f92E8a1c0deC1b1747d010903E884bE1') THEN eth_vol ELSE 0 END) AS eth_optimism_vol, SUM(CASE WHEN eth_to_address = LOWER('0x4Dbd4fc535Ac27206064B68FfCf827b0A60BAB3f') THEN eth_vol ELSE 0 END) AS eth_arbitrum_vol,
Definition
L2 in the context of blockchain refers to Layer 2 solutions.
Blockchain networks like Ethereum and Bitcoin are known as Layer 1 (L1) solutions because they form the base layer of the technology stack. They provide a decentralized, secure, and transparent ledger for storing and verifying transactions.
However, L1 solutions have scalability and performance limitations, and this is where Layer 2 (L2) solutions come in. L2 solutions are built on top of the L1 layer and aim to address the scalability and performance limitations by offloading some of the computations and transactions to a secondary layer. This way, L2 solutions can provide faster and cheaper transactions while still maintaining the security and decentralization of the L1 layer.
Finding 🔍
In graphs above it can be seen that the polygon has way more active and new users in general, but Arbitrum performed very well since 18th of September and finally achieved the second place in total Users amount; worth mentioning that polygon used to be in 750k-1M active users per week, but within first week of January 2023 it passed the 2M like what it used to be in 10-17 October ,and it shows how much users on polygon can become active and potential on this network can get almost doubled within 1 week!
Optimism on the other hand doesn’t have significant rise and falls on its path, and its growing like other two but more consistently.
Finding 🔍
The graphs above illustrates the number of trades done on each chain were almost in the range except Arbitrum’s first 3months changes on trading amount which some of them were mind blowing,from 116.42k trades in week to 1.5645x10^28 trades count in one week is pretty much self explanatory, but since 25th Jul Arbitrum found its place in trade amount and now it has its own range as well.
Comparing fee in these 3 chains it seems that Arbitrum has lowest fee because it has higher number of trading transaction, but much lower fee in total.
Finding 🔍
A deeper analysis of the statistics and data suggests that the blockchain network Arbitrum stands out with the least number of failed transactions. Furthermore, its number of transactions is constantly growing, which is a positive indication of its increasing popularity and usage.
On the other hand, Polygon is the strongest in terms of sheer transaction volume, but its transaction status has not seen any significant improvements. This could mean that while it is widely used, it may still have room for improvement in terms of transaction efficiency and stability.
Finally, Optimism has seen an increase in the number of transactions since April 18th, but it also has a higher rate of failed transactions. This could indicate that while the number of transactions is increasing, there may be some underlying issues that need to be addressed in order to ensure a more reliable and efficient blockchain network. Overall, it's important to take into account all aspects of the performance and usage of a blockchain network in order to make an informed decision.
Finding 🔍
the bar chart on the right side displays the amount of ethereum
transferred into each chain within one week,the highest amount transferred for Optimism used to be on first day of August 2022;the value for Aribitrum was on 12th of September 2022,and finally polygon had the most transferred ethereum on 19th September 2022.
but when it comes to total volume transferred, Aribitrum isn’t competing with optimism anymore, instead it has so high volume which makes it competing with polygon in this scenario.
CONCLUSION
Comparing three blockchain networks: Polygon, Arbitrum, and Optimism.
Polygon has the highest number of active and new users, but Arbitrum has been performing well and has achieved the second place in terms of total users.
Optimism has been growing consistently, but hasn't had significant changes in its number of users.
In terms of trades, Arbitrum had a big change in its first three months in trading counts, and found its place and has the lowest fees among the three.
Polygon has the highest transaction volume, but needs improvement in transaction efficiency.
Optimism has seen an increase in transactions, but also has a higher rate of failed transactions.
finally the amount of Ethereum transferred into each network within a week has been illustrated, the highest amount transferred to Optimism on August 1st, to Arbitrum on September 12th, and to Polygon on September 19th.
Additionally When it comes to total volume transferred, Arbitrum is competing with Polygon.
