Layer 2 Solutions See Significant Growth with Arbitrum and Polymarket Leading in Volume

Layer 2 (L2) solutions in the cryptocurrency space are experiencing significant growth, with active addresses surpassing 20 million in the last month. Leading the charge are platforms such as Arbitrum, Base, zkSync, Optimism, LineaBuild, and Scroll. Arbitrum, in particular, has seen a substantial increase in activity, overtaking Ethereum in monthly active users and capturing 35% of all USD flows from Ethereum. Monthly volume on Arbitrum has nearly doubled from $6.87 billion in May 2023 to $11.66 billion in May 2024. Meanwhile, Polymarket, a Polygon-based prediction market, has achieved an all-time high in monthly trading volume, reaching over $62 million in May. The surge in activity on Polymarket is partly driven by the U.S. election markets, which have attracted more than $235 million in wagers. Additionally, the Ronin Network has surpassed 3 million monthly active users.