Can Polygon 2.0 reverse MATIC’s downturn?

Polygon 2.0: A Potential Game Changer for MATIC?

Polygon Labs, the team behind Polygon (MATIC), recently announced the launch of Polygon 2.0, a value layer of the internet. This exciting development, made public on 12 June, opens up new possibilities for creating and exchanging information through Polygon’s architecture.

Although the upgrade is not yet fully operational, Polygon has shared the blueprint for version 2.0 in its official statement. According to their rollout plan, users of the Ethereum (ETH) scaling and infrastructural network will have access to infinite scalability through the Zero-Knowledge (ZK) feature.

Deploying the Rollup as Sentiment Slides

In March, Polygon introduced the beta version of the zk Ethereum Virtual Machine (zkEVM). However, the protocol has not yet reached its peak in adoption. Some have raised concerns about this development, while others have chosen to explore other ZK rollups like zkSync Era.

Nevertheless, Polygon and MATIC face challenges beyond the underwhelming adoption of Polygon zkEVM.

According to Santiment, MATIC has struggled to gain positive perception within the crypto community since April. Based on on-chain data, the weighted sentiment has fallen to -2.20.

Weighted sentiment is calculated as an aggregate of positive and negative social commentary. The negative sentiment indicates that there has been more negative commentary than positive over the past two months.

Surge in Active Addresses Despite Reduced MATIC Search

Additionally, MATIC’s network growth has declined to 25,200 after an initial surge in the first few days of June. This suggests that the growth of new addresses has been sluggish, and transactions by recently onboarded users have not reached remarkable levels.

MATIC’s social volume has also seen a decline, consistent over the past few days. Social volume measures the level of search terms across various social networks.

When social volume increases, it indicates that an asset is gaining attention from investors within a particular period. However, the decrease in MATIC’s social volume suggests otherwise.

On the bright side, the recent launch of Polygon 2.0 coincided with a spike in active addresses, which surged to 283,000 at the time of writing.

Typically, the number of active addresses rises when transactions on a network increase. A decrease in active addresses implies a decline in sending and receiving traction.

Therefore, Polygon 2.0 could have a significant impact on the level of activity and traction within the network. Furthermore, its zkEVM arm has witnessed a growing adoption rate.

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