• The competition in the L2 solutions space is fierce, with Polygon [MATIC] and Optimism [OP] vying for a share.
• MATIC sustained more regulatory pressure on price performance than OP, giving competitors like OP more edge on the price charts.
• During the recovery phase between mid-June and July, BTC rebound strongly from $25k and reclaimed $31k; OP hiked over 40%, reversing all losses while MATIC only gained about 20%.
Analysis: Polygon vs Optimism
Polygon [MATIC] and Optimism [OP] are both vying for a share in the L2 solutions space. Due to regulatory pressure, MATIC has been performing worse than OP on the price charts, resulting in OP having more of an edge.
Q2 Performance
In early June, when Bitcoin dropped 8% from $27k to $25k due to US SEC suing Binance and Coinbase, MATIC dropped 44% from $0.90 to around $0.50. On the other hand, OP dropped 41%, losing hold of its psychological level of $1.5 and settling near $0.9 during this period.
Q3 Performance
During the recovery phase between mid-June and July due to institutional ETF hype driving up Bitcoin prices from $25k to over $31K – an increase of over 20%, OP managed to hike over 40% while MATIC rose by about 20%.
Conclusion
It remains uncertain which altcoin will favor Q3 as both must deal with overhead roadblocks before extra bullish intent can be seen in Q3 markets but it appears that OPT has a clear lead as MATIC struggles with regulatory uncertainty.
Disclaimer
The information presented does not constitute financial, investment, trading or other types of advice and is solely the writer’s opinion
