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Arbitrum (ARB) Might Be Worst Performing Ethereum L2, Here’s Reason
Amongst most Ethereum Layer-2 solutions, Arbitrum (ARB) comes off as the least performing, per data from IntoTheBlock. The network has recorded weak price performance in addition to other dwindling metrics.
Markedly, this outlook raises concern considering Arbitrum’s stellar reputation amongst other L2s. This downtrend could be triggered by various factors but it coincides with a general downtrend in the crypto ecosystem.
Other Ethereum L2s Outperforms Arbitrum
From the insight obtained from IntoTheBlock data, only 0.47% of the total addresses are “in the money” or making profits. This corresponds with about 5,360 addresses. The most significant group is those who are “out of the money”, representing as much as 96.78%. By this percentage, more than 1.15 million addresses are currently unprofitable. The last group spotted are those who are “at the money”.
This group has neither registered profit nor a loss. Instead, they are at a break-even point and IntoTheBlock data shows that 32,810 addresses fall into this category. They represent only 2.75% of the total addresses on the Arbitrum blockchain. This is understandable considering the price of Arbitrum and its loss thus far this year. The token is changing hands for $0.6756, down by 13.32% in the past week.
Generally, the ETH L2 ecosystem has seen better days than it is currently faced with. However, compared to other Ethereum L2s, Arbitrum is facing a negative sentiment.
Polygon has about 19,270 addresses “in the money”, corresponding with 2.96% of the total number of addresses on the L2. Like Arbitrum, Polygon also has the most significant portion of its addresses “out of the money”. Precisely, 627,110 Polygon addresses, or 96.44% of the total are now unprofitable. While 0.60% or 3,870 addresses are at the break-even point.
Then there is Mantle, another fast-rising Ethereum L2. The Mantle Network has experienced substantial growth, fueled by a growing interest in its applications.
Mantle has registered way better performance than Arbitrum and Polygon combined. Its volume of addresses “in the money” is almost as much as those “out of the money”. A whopping 46.69% of its total addresses are in profit and this is equal to 8,490 addresses.
Another 47.18% or 8,580 addresses are not in profit while about 6.13% or 1,100 addresses have broken even.
Ethereum L2s on The Rise
Meanwhile, the Ethereum L2 ecosystem is gradually expanding with more protocols pushing to take a slice of the market. In April, cryptocurrency exchange OKX officially launched its L2 blockchain project dubbed X Layer on the Ethereum ecosystem. This automatically made the project, which was built using the Polygon Chain Development Kit (CDK) available to the public.
In other Arbitrum news, the project plans to unlock $75 million worth of its tokens on July 16. This will mark the fifth time the platform has released some of its locked tokens back to the market to support its teams, advisers, and investors.
Arbitrum (ARB) Might Be Worst Performing Ethereum L2, Here’s Reason
