- Another whale purchased $6.15 million worth of ARB tokens, but MATIC failed to attract such investment.
- There were more new unique transactions on Arbitrum than on Polygon.
For accumulation type Arbitrum [ARB] After what we have experienced within the past few months, another Ethereum L2 like Polygon [MATIC] You may need to be careful.
AMBCrypto has reported several times how investors bought ARB in large quantities. Activity slowed down at some point, but another accumulation resurfaced on May 17th.
According to Arbiscan, Whales purchased 4.17 million ARB on the date mentioned above. This same buyer has been purchasing tokens since his July 2023.
In total, participants hold $6.15 million worth of tokens, despite offloading some previously.
Both tokens fall, but one has the upper hand
Such purchases suggest confidence in the long-term performance of the token. This is something Polygon has learned the hard way.
In terms of price, MATIC has lost 29.23% of its value on a year-to-date (YTD) basis. However, ARB's performance was even worse, during the same period he recorded a decline of 40.86%.
Source: CoinMarketCap
However, the consistency of ARB accumulation could change the situation. In this case, the Polygon native token could start to lag behind the Arbitrum governance cryptocurrency.
Beyond price, other aspects of individual ecosystems can provide insight into potential future performance. First, AMBCrypto compared the growth of the network.
This metric shows the number of new addresses transacting on the network. At the time of writing, Arbitrum's network growth was 1526.
For Polygon, it was 225. This large difference was evidence that market participants were flocking to his Arbitrum. However, Polygon has not achieved much in terms of convincing new entrants to trade using MATIC.
Source: Santiment
If this situation continues, ARB's price could experience significant levels of appreciation. Additionally, the token was able to cross the $1 landmark.
ARB struggled for months to revisit the area. Depending on how you look at it, the price of cryptocurrencies could rise even higher than this.
However, this does not mean that it will be easy to beat the all-time high of $2.39 reached in March.
Will Arbitrum's market cap triple?
Despite the potential shown by Arbitrum, it may be difficult to reverse Polygon's market cap. At the time of this writing, Arbitrum's market capitalization was $2.72 billion.
Polygon, on the other hand, tripled to $7.12 billion. For ARB to reach this high, the price would need to rise above $3.50. However, that would require MATIC to stall below $1.
Based on our analysis, Arbitrum is likely to continue to outperform Polygon in terms of transactions. This may also result in better performance than MATIC.
Realistic or not, ARB's market capitalization calculated by MATIC is as follows:
In the long run, the price may depend on Ethereum since ARB and MATIC are both L2 of the blockchain.
If the price of ETH rises, ARB and Polygon native tokens will probably jump. On the other hand, a decrease in the value of ETH could cause the token's price to plummet.
