Polygon zkEVM: Of rising adoption and MATIC’s reaction

Journalist

Posted: December 28, 2023

• zkEVM’s average gas price started to drop after increasing on the 16th of December. 
• MATIC was up by over 18%, and social sentiments turned bullish. 

Polygon [MATIC] zkEVM has come a long way this year since its launch. Inasmuch, Sandeep Nailwal, the co-founder of Polygon, took to X (formerly Twitter) to highlight one of the latest achievements of the zk rollup.

As per Nailwal’s tweet, among the top 15 roll-ups by TVL and adoption, four are being built using the Polygon zk-tech stack. This indicated the sheer adoption and capabilities of Polygon’s zk Stack.

Among the top four, Immutable, Manta Network, and Polygon zkEVM sat in the top three positions. These rollups had a TVL of $212 million, $228 million, and $119 million, respectively.

Amongst the top 15 roll-ups by TVL and adoption, 4 are built are being built using the Polygon zk-tech stack.

Admittedly, all still fairly small, total <600mn, but looks exciting in terms of the direction.@Immutable – $212mn@MantaNetwork – $228mn@0xPolygon zkEVM – $119mn… pic.twitter.com/6iYwrXYj9X

— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) December 25, 2023

Since zkEVM made it to the top three, AMBCrypto took a look at the rollup’s overall health. Our analysis of Artemis’ data revealed that zkEVM’s TVL has been on a constant rise over the last three months.

For the uninitiated, the higher the TVL of a project, the more secure and valuable it is perceived to be.

However, despite the rollup’s robust performance in the DeFi space, its network usage seemed to have declined in recent months. This was evident from the fact that its Daily Active Addresses waned.

Source: Artemis

A similar declining trend was also noted in terms of its Daily Transactions. 

A look at Polygonscan’s data also revealed that after spiking on the 16th of December, Polygon zkEVM’s average gas price started to decline, which could lure new users onto the network over the weeks to follow.

Source: Polygonscan

MATIC is pumping!

Amidst this, Polygon’s native token MATIC’s price gained bullish momentum as both its daily and weekly charts turned green. CoinMarketCap’s data revealed that in the last 24 hours alone, MATIC’s value surged by over 18%.

At the time of writing, MATIC was trading at $1.05 with a market capitalization of over $10 billion.

Read Polygon’s [MATIC] Price Prediction 2023-24

Thanks to the price uptick, MATIC’s Social Volume increased sharply. Positive sentiment around the token was also dominant in the market, as evident from the spike in its Weighted Sentiment.

Polygon’s Binance Funding Rate also rose in the recent past, suggesting that derivatives investors were buying MATIC at a higher price at press time.

Source: Santiment