Comparing Arbitrum, Optimism And Polygon: How Ethereum Layer 2 Blockchains Are Impacting Upcoming Cryptocurrencies Like Dogetti

Ethereum Layer 2 (L2) blockchains are increasingly gaining popularity in the crypto industry, and they have become an essential service for investors. L2s are designed to make transactions on the Ethereum network more cost-effective compared to Layer 1 blockchains. The crypto industry has witnessed the emergence of several L2 blockchains that compete for market share on the Ethereum blockchain, and the top three are Polygon, Arbitrum, and Optimism. These three L2s have experienced significant support in the market, but their performances vary, and this report takes a look at their respective performances to determine the best performer.

Rise in Total Value Locked (TLV)

The total value locked (TVL) on the top three Ethereum Layer 2 blockchains has grown significantly since their inception. However, there has been a substantial difference in usage and TVL on the blockchain. Arbitrum, which is the latest blockchain to gain widespread popularity, has taken the lead in terms of TVL and usage.

The Layer 2 upgrade presently boasts the fourth largest total value locked (TVL) in decentralised finance (DeFi), surpassing $2.2 billion. Of the three L2 networks, Arbitrum has the highest TVL, with over $2.2 billion locked, while Polygon has a TVL of only $1.07 billion, which is over 50% lower than Arbitrum. Optimism has the lowest TVL of the three, with $923 million.

Optimism beats Arbitrum And Polygon

In terms of usage, Arbitrum is the leader, with a 24-hour trading volume of $583 million, whereas Polygon has a 24-hour trading volume of $148 million, and Optimism has a trading volume of $38 million. With the release of tokens for all three L2 networks, their performance can be evaluated against one another. Although some networks have performed better than others, the margin between them remains quite narrow.

Arbitrum's price has surged 10% in the last day to $1.26. However, Optimism has done even better, with its price crossing $2.28, a 10.39% increase in the same time period. Polygon is the worst performer of the three, with an 8% gain that has brought its price to $1.14. Despite underperforming, Polygon still holds the largest market capitalization among the three, amounting to $10.35 billion, while ARB and OP have market capitalizations of $1.6 billion and $716 million, respectively.

How Ethereum's Layer 2 Supports New Crypto

The Ethereum (ETH) Layer 2 upgrade has contributed to a significant price increase of 4% for Ethereum (ETH) in the past month. This upgrade is expected to have a positive impact on smaller cryptocurrencies that rely on the Ethereum (ETH) network for transactions and activities. One such promising meme currency that falls into this category is Dogetti (DETI).

Dogetti (DETI) is a new entrant in the meme coin market that is trying to compete with the giants Dogecoin (DOGE) and Shiba Inu (SHIB). Similar to other meme coins, Dogetti (DETI) focuses on accessible, irreverent marketing, cute characters representing the token's community, and relies heavily on the Ethereum (ETH) network's solid foundation.

With the upcoming Layer 2 upgrade and other improvements and extensions that the Ethereum development team is working on, Dogetti (DETI) could emerge as one of the winners in the meme coin presale sub-market niche. It is an excellent opportunity to look into Dogetti (DETI) and other similar coins that leverage the reputable and long-standing Ethereum network.

The three top Ethereum Layer 2 blockchains have made significant progress in the crypto industry, providing a very needed service to investors. However, their performances vary significantly, and Arbitrum is currently leading the way in terms of TVL, usage, and token price, followed by Polygon and Optimism. As L2 blockchains continue to evolve and gain wider acceptance, it will be interesting to see how their performances evolve and which one will come out on top in the end. One is that these developments will definitely boost upcoming altcoins like Dogetti.