• Ethereum Layer-2 tokens have struggled in the past few weeks, with Polygon’s MATIC and Optimism’s OP both down double digits.
• Arbitrum’s newly launched ARB token reached a new all-time low recently.
• ARB is currently down around 89% from its all-time high of $8.67 and only 1.275 billion out of 10 billion ARB tokens are circulating.
Ethereum Layer-2 Tokens Struggle
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. Polygon’s MATIC has seen sustained selling pressure over the past week and is currently trading at $0.57 according to data from Coingecko. Optimism’s OP governance token is also down double digits in the past week and is trading at $1.11, 20% lower than at the start of the week according to Coingecko data.
ARB Hits All Time Low
Arbitrum’s native governance token, ARB, has struggled in recent weeks and just hit an all time low of $0.91 on Thursday amidst broad crypto sell offs according to Coingecko data. It is currently trading at $0.94 but this price mark was there for a tiny amount when it started claiming on March 23rd when it was immediately dumped once users began claiming and selling their ARB tokens which are now circulating 1/10th of its original supply with only 1/10th being unlocked so far leading to more future selling pressures as tokens become available again..
Celsius Selling Altcoins
One possible reason why MATIC is down so much could be related to Celsius who announced on Thursday that it would be selling all of its altcoin assets for BTC and ETH starting July 1st with them currently holding around $56 million worth of MATIC as well as other altcoins like OPTIMISM that are also seeing major drops in their prices recently due to lack of economic benefit linked to them currently making them purely reliant upon market speculation for any upside potential or downside risk exposure which could lead to further declines going forward if they do not find some form of economic value soon enough otherwise investors may continue abandoning them if they cannot offer anything more than pure speculation right now as they were created for initially before losing most of their value since then due to lack thereof that they could offer outside their respective networks..
No Economic Benefit Linked To Tokens
Currently Ethereum Layer-2 tokens have no economic benefit linked to them making them purely reliant upon market speculation for any upside potential or downside risk exposure which could lead to further declines going forward if they do not find some form of economic value soon enough otherwise investors may continue abandoning them if they cannot offer anything more than pure speculation right now as they were created for initially before losing most of their value since then due to lack thereof that they could offer outside their respective networks..
Conclusion
Ethereum Layer- 2 tokens are one of the most promising technologies currently present in the market but unfortunately have been struggling recently due mainly because there is no economic benefit linked directly too these tokens making them highly speculative investments leaving investors exposed too downsides without any real way too gain back losses should things go south based solely upon market sentiment which could lead too further decline should these networks not find some type off practical use case soon enough outside just being used as pure speculations investments at this current moment in time until then these networks will remain volatile assets subject too extreme swings depending upon market sentiment alone without any real fundamental backing behind them yet still remaining one off thee most promising projects within thee space today!.