Evaluating the Recovery Efforts of Polygon zkEVM

Evaluating the Recovery Efforts of Polygon zkEVM

Polygon zkEVM’s Growth Event in February 2024

Polygon zkEVM has an event organized in February 2024 that can help with its growth in the DeFi ecosystem.

Recent Developments and Performance Metrics

Polygon zkEVM’s network activity declined last month, along with its TVL. Meanwhile, MATIC’s price gained bullish momentum as it surged by 13%.

Polygon [MATIC] zkEVM’s performance has been on the decline over the last few weeks. However, the L2 does have a new trick up its sleeve, which can help turn the situation around in zkEVM’s favor. In the meantime, Polygon’s native token, MATIC, registered a double-digit price growth.

Examining Polygon zkEVM’s Future Plans

AMBCrypto’s look at Artemis’ data revealed that the rollup’s Total Value Locked (TVL) dropped sharply last month, indicating a subpar DeFi performance.

  • TVL, fees, and revenue declined during the same period.
  • Network activity remained low with decreased daily active addresses and transactions.

Despite these challenges, zkEVM has an event planned for February 2024, offering a prize pool of $50,000. This initiative aims to attract new projects and users, potentially improving zkEVM’s metrics. Additionally, zkEVM has entered its second phase of development, focusing on fostering the growth of decentralized applications (dApps) on the network.

Comparison with Competitors

While zkEVM’s future plans and recent developments signal potential growth, it still lags behind competitors like zkSync Era and Base in terms of active addresses and daily transactions.

Revenue remains a relative strength for zkEVM, as seen in closely knit charts compared to competitors.

MATIC’s Bullish Momentum and Investor Sentiment

Amidst challenges, MATIC’s price gained over 13% in the last seven days, reaching $0.8248 with a market capitalization exceeding $7.9 billion.

  • Positive sentiment around MATIC surged, evident from the spike in its weighted sentiment.
  • Social volume increased, indicating ongoing discussions about Polygon in the crypto community.

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