Daan Crypto Trades and FreezyGG, two prominent names in the crypto trading community, have voiced their opinions on the valuations of layer-2 tokens, particularly OP, ARB, and $MATIC.
OP is overvalued based on volume and fully diluted valuation, according to cryptocurrency analyst Dan Crypto Trades:
Out of all the Layer 2s, $OP seems extremely overvalued when looking at volume transacted by the chain as well as FDV.$ARB – $16.5B FDV & $4.45B Weekly volume.$OP – $11.6B FDV & 477M Weekly volume.$MATIC – $11.6B FDV & 614M Weekly volume. pic.twitter.com/2m2IsSNoBY
— Daan Crypto Trades (@DaanCrypto) April 19, 2023
According to Daan Crypto Trades, OP seems overvalued when volume transacted by the chain and fully diluted valuation (FDV) are considered. ARB, with a $16.5 billion FDV and a $4.45 billion, has the highest FDV and weekly volume among the three tokens. In contrast, OP has an $11.6 billion FDV and a weekly volume of 477 million, making it less valuable than ARB and MATIC.
Additionally, Daan Crypto Trades shared that OP unlocks would continue throughout 2024, while ARB’s unlocks won’t wouldn’t begin until March 2024. This could potentially impact the valuation of these tokens in the long run. Daan Crypto Trades believes that ARB could take market share from OP, which could be reflected in the token valuation. A pair trade where investors go long on ARB and short on OP could potentially profit from these discrepancies.
In a recent tweet, FreezyGG expressed his their belief that ARB is currently undervalued compared to Ethereum and Solana:
ARB has more busy network than eth and sol. Highly indervalued imo. Also zero resistance overhead, which makes it easy to pump and NO bagholders trying to get out break even https://t.co/dvpRzmE4B3
— FreezyGG (@InsideTheChart) April 19, 2023
FreezyGG believes that ARB is currently undervalued compared to Ethereum and Solana. With a busy network and zero resistance overhead, FreezyGG thinks that ARB could pull up to $2 if ETH/BTC behaves, with a bullish structure remaining intact and gray demand holding.
In conclusion, when considering the relative valuations of these Layer 2 tokens, it’s important to take into account the discrepancies between FDV and transaction volumes, as well as the unlocking schedules of these tokens. These insights from Daan Crypto Trades and FreezyGG mightay beserve as useful guides for investors looking to navigate this space.
