Ethereum Layer-2 Tokens Struggle as ARB Hits All-Time Low

MATIC is down 36% in the past seven days.

Little character sitting and watching rain fall on Ethereum at a magical crystal kingdom.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon’s MATIC has seen sustained selling pressure over the past week.
  • Other tokens like Optimism’s OP are also down double digits.
  • Arbitrum’s 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, Arbitrum’s 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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Polygon’s native token, MATIC, seems to have been hit the hardest. In just a week, MATIC went down around 36%. It’s currently trading at $0.57, according to data from Coingecko.

Polygon (MATIC) price chart.
Polygon (MATIC) price chart. Source: 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.

Optimism’s 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.

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In the meantime, Arbitrum’s newly-launched ARB token just reached a new all-time low.

ARB Hits New All-Time Low

Arbitrum’s 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. It’s currently trading at $0.94, according to data from Coingecko.

Arbitrum (ARB) price chart. Source: Coingecko.
Arbitrum (ARB) price chart. Source: 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. They’re 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: Here’s What This Means

Read more about Delio freezing withdrawals:

South Korean Crypto Lender Delio Freezes Withdrawals: Here’s Why

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Arturas Skur

Arturas Skur is a cryptocurrency news reporter at DailyCoin who covers Web 3.0 domains, DeFi, and Ethereum Layer-2s. With over five years of experience in journalism and public relations, Arturas brings his critical thinking and analytical abilities to deliver insightful news stories. In his free time, he enjoys hiking, playing with his dog, and reading.