- Another whale purchased $6.15 million worth of ARB tokens, but MATIC failed to attract that investment.
- Arbitrum’s new unique deals outnumbered Polygon’s.
If Arbitrum (ARB) has experienced some kind of accumulation over the past few months, you might want to pay attention to another Ethereum L2 like Polygon (MATIC).
AMBCrypto has reported on several occasions how investors have been buying ARB in large quantities. While activity slowed down at some point, another accumulation reappeared on May 17.
According to Arbiscan, one whale purchased 4.17 million ARBs on the dates mentioned. These same buyers have been purchasing tokens since July 2023.
Participants hold a total of $6.15 million worth of tokens, despite previously offloading some.
Both tokens fall, but one has the upper hand.
Purchases like these imply confidence in the token’s long-term performance. This is what Polygon has strived to experience.
Regarding the price, MATIC has lost 29.23% of its value on a Year-To-Date (YTD) basis. But the situation at ARB was worse. It recorded a decline of 40.86% during the same period.
Source: CoinMarketCap
However, the consistency of ARB accumulation may change the situation. In this case, the Polygon native token may start to lag behind the Arbitrum governance cryptocurrency.
In addition to price, other aspects of individual ecosystems provide insight into potential future performance. First, AMBCrypto compared network growth.
This metric shows the number of new addresses performing transactions on the network. At press time, Arbitrum’s network growth was 1526.
For Polygon it was 225. The key difference was evidence that market participants flocked to Arbitrum. However, Polygon hasn’t had much success convincing new entrants to trade using MATIC.
Source: Santiment
If this continues, the price of ARB could experience significant increases. Moreover, the token was able to surpass the $1 landmark.
For months, ARB had difficulty revisiting the area. If you think about it, the price of cryptocurrency may rise even higher.
However, this does not mean that the all-time high of $2.39 reached in March will be easily reached.
Could Arbitrum triple its market capitalization?
Despite the potential Arbitrum has shown, it may be difficult to turn Polygon’s market cap around. At the time of this writing, Arbitrum’s market capitalization was $2.72 billion.
On the other hand, Polygon tripled to $7.12 billion. For ARB to reach these heights, the price would have to surpass $3.50. But that would require MATIC to stop below $1.
Our analysis suggests that Arbitrum may continue to outperform Polygon in terms of transactions. Additionally, it can provide improved performance over MATIC.
Realistic or not, ARB’s market capitalization in MATIC terms is:
In the long term, the prices of ARB and MATIC may vary on Ethereum since both are L2 of the blockchain.
When ETH price surges, ARB and Polygon native tokens are likely to surge. On the other hand, a decrease in the value of ETH may cause the token price to plummet.