Will Polygon be left behind as other L2 solutions grow?
September 5, 2023
By Himalay Patel
Realistic or not, here’s MATIC’s market cap in BTC’s terms
Polygon faces growing competition from newcomers, impacting its fee generation and DeFi standing
Polygon’s Dragon Fruit update bolsters its competitiveness in the L2 scaling solutions arena
The Layer 2 scaling solutions sector has grown increasingly competitive with each passing day. Recent entrants like “BuildOnBase” have not only seen significant growth, but have also amassed substantial fees.
In the last 30 days alone, for instance, Base has led the pack in fee generation, raking in an impressive $4.06 million, surpassing other notable Layer 2 solutions like Starknet, Arbitrum, OP Mainnet, and Polygon.
No high fees for Polygon
Needless to say, Polygon’s performance in fee generation didn’t quite match up to its counterparts in the Layer 2 ecosystem. Understandably, this discrepancy raised pertinent questions about the future of Polygon in the context of Layer 2 scalability solutions.
Despite its strong overall performance, however, Polygon did face particular challenges within the DeFi sector.
In this arena, Arbitrum has established dominance, leading in both Total Value Locked (TVL) and Decentralized Exchange (DEX) volumes. Over the past month, Polygon has also seen a notable decline in both TVL and DEX volumes, sparking concerns about its position and competitiveness within the DeFi landscape.
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