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Accumulations on the Arbitrum side in the past few months may indicate that other Ethereum L2s like Polygon (MATIC) need to be cautious. After the recent unlocks, it was revealed how much ARB investors had bought. However, buying activities had slowed down at one point. Despite this, another buying situation emerged on May 17. According to data shared by Arbiscan, a whale purchased 4.17 million ARB on the mentioned date. The same whale has bought a total of $6.15 million worth of ARB since July 2023.
Arbitrum or Polygon?
Whale purchases of this kind generally indicate long-term confidence in the token’s performance. This is a situation rarely seen on the Polygon side. However, looking at MATIC‘s price performance, it experienced a Year-to-Date (YTD) loss of 29.23%, while ARB saw a 40.86% drop, performing worse.
However, the consistency of accumulation on the ARB side could create a change in the situation. If accumulation activities continue this way, Polygon may fall behind Arbitrum. The growth of both cryptocurrencies holds significant answers.
The mentioned metric reveals the number of new addresses transacting on the network. As of the time of writing, network growth on Arbitrum indicated 1526. On the Polygon side, it was only 225. This difference indicated how much more ARB was preferred among market participants.
If the process continues, there is a possibility of a noticeable increase in ARB’s price. Moreover, the token managed to surpass the critical $1 level again.
Can Arbitrum’s Market Cap Triple?
ARB bulls had struggled for months to regain the region after the sharp decline. In the coming days, the price may advance beyond this, but it does not change the fact that reaching the all-time high of $2.39 seen in March is not as easy as it seems.
Despite the potential emerging on the Arbitrum side, it may struggle to reach the market cap that Polygon already has. As of the time of writing, Arbitrum’s market cap was $2.72 billion. Polygon, on the other hand, had a massive market cap of $7.12 billion. For ARB to reach the mentioned level, its price needs to exceed $3.50. In this scenario, MATIC would need to stay below $1.
