Positive Growth in Polygon zkEVM
Blockchain networks often face challenges in achieving growth during slow market conditions. However, the Polygon network has managed to overcome these limitations, thanks to one particular segment.
Polygon zkEVM has been garnering significant attention recently, leading to a surge in positive growth. This is evident from the impressive Total Value Locked (TVL) it has achieved within a relatively short period. To put this growth into perspective, Polygon zkEVM’s TVL surged from $1.5 million to $14 million.
One of the key reasons for this growth is that zkEVM provides Polygon with additional benefits, including lower costs and improved scalability. Consequently, many investors are confident that it is the ideal solution to supercharge Polygon’s growth.
Polygon zkEVM’s TVL Growth
Initially, Polygon zkEVM had less than $500 million in Total Value Locked (TVL). The TVL growth saw a healthy start, but it truly accelerated after mid-May, with the network adding slightly over $12 million to its TVL in the last two weeks.
This growth offers valuable insights into how the market has responded to zkEVM, signaling a very positive response. However, the question remains whether the same will translate into increased demand for MATIC, Polygon’s native token.
MATIC’s Price Action
MATIC may already be benefiting from the growth associated with the Polygon zkEVM hype, as evidenced by its recent performance. While most top cryptocurrencies experienced lateral price movement, MATIC’s price stagnation was short-lived, unlike its counterparts.
Over the last five days, MATIC has been on a bullish trajectory, overcoming its ranging performance. It traded at $0.92 after failing to push back above $1.
However, MATIC’s upside potential might be short-lived, as its momentum is showing signs of slowing down. On-chain metrics reveal this trend.
Polygon’s On-Chain Metrics
Polygon’s network growth metric is currently at its lowest level in the last four weeks. The network growth peaked at the start of the recent rally, which began with a spike in social dominance.
During the recent rally, there was a surge in daily active addresses starting from 23 May.
However, since the tail end of the recent hype on 27 May, addresses registered a notable slowdown, leading to some selling pressure in the last 24 hours. It is worth noting that there was a slight surge in the number of daily active addresses too.
Polygon zkEVM’s impressive performance and growth in on-chain metrics have played a significant role in driving positive growth for the network. The lower costs and enhanced scalability it offers have attracted investors, boosting Polygon’s TVL.
MATIC, as Polygon’s native token, has also benefited from the Polygon zkEVM hype, showing a bullish trajectory in the last five days. However, it’s crucial to keep an eye on the on-chain metrics, as they may influence MATIC’s future performance.