- Polygonโs MATIC has seen sustained selling pressure over the past week.
- Other tokens like Optimismโs OP are also down double digits.
- Arbitrumโs ARB just hit a new all-time low.
Ethereum Layer-2 scaling solutions have had a fantastic year, with multiple zkEVMs launching almost all simultaneously. However, Layer-2 tokens have been struggling in the past few weeks.
For example, Arbitrumโs new native governance token reached a new all-time low a few days ago.
Ethereum Layer-2 Tokens Struggle to Recover
Ethereum Layer-2 tokens have been having a hard time amid the broad market sell-off in the past few weeks.
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Polygonโs native token, MATIC, seems to have been hit the hardest. In just a week, MATIC went down around 36%. Itโs currently trading at $0.57, according to data from Coingecko.
One possible reason why MATIC is down so much is related to Celsius. On Thursday, the bankrupt crypto lender announced that it would be selling all of its altcoin assets for BTC and ETH starting July 1. Celsius currently holds around $56 million worth of MATIC.
Optimismโs OP governance token is also down double-digits in the past week. OP is trading at $1.11, 20% lower than at the start of the week, according to data from Coingecko.
In the meantime, Arbitrumโs newly-launched ARB token just reached a new all-time low.
ARB Hits New All-Time Low
Arbitrumโs new governance token, ARB, has struggled in the past few weeks.
On Thursday, amid the broad crypto sell-off, ARB hit a new all-time low of $0.91. Itโs currently trading at $0.94, according to data from Coingecko.
ARB is currently down around 89% from its all-time high of $8.67. However, this price mark was there for a tiny amount when the airdrop claiming started on March 23. ARB was dumped immediately after users started claiming and selling their ARB.
At the same time, only 1.275 billion out of 10 billion ARB tokens are circulating, pointing to future selling pressure as tokens get unlocked.
On the Flipside
- Ethereum Layer-2 tokens currently have no economic benefit linked to them. Theyโre purely governance tokens.
Why This Matters
Ethereum Layer-2 tokens are one of the most promising in the market, especially if they add economic value in the future.
Read more about Circle deploying USDC on Arbitrum:
Circle to Deploy USDC on Arbitrum: Hereโs What This Means
Read more about Delio freezing withdrawals:
South Korean Crypto Lender Delio Freezes Withdrawals: Hereโs Why
