Polygon [MATIC] zkEVM Mainnet launch triggers competition in L2 ecosystem
The launch of the Polygon [MATIC] zkEVM Mainnet could set in motion a combat among projects in the layer two (L2) ecosystem. Surely, all, including Arbitrum [ARB] and Optimism [OP], have their strengths. However, Polygon noted that zkEVM would improve on the scaling effect and improve its current numbers.
The rollup race is in full-fledged mode
But before the Polygon event, these optimistic rollup-based protocols made more transaction fees than the eighth-largest blockchain. As shared by The Rollup, using Token Terminal’s data, both Arbitrum and Optimsm outperformed Polygon in the last 30 days.
This data implies that the number of addresses registering on the optimistic rollup network was higher. The same goes for the transactions made. And, in retrospect, Polygon’s revenue decreased For Arbtirum, this could be connected to the recently distributed AirDrop, which caused FOMO and FUD. Many also seem to view the Arbitrum ecosystem as a potential long-term favorite; hence, the rapid growth in the number of users.
The reason for Optimism’s growth was unclear even though it was the L2 star of Q3 2022. However, it was possible that the action of MATIC whales could make way for the Polygon’s resurgence. This was because the number of addresses holding 1,000 to 100,000 worth of the token had increased their holdings since the zkEVM pronouncement.
Usually, this gesture confirms investor sentiment towards bullishness and price action. However, an increase in transactions, if sustained, could also drive a hike in fees generated. Also, Polygon confirmed that several projects would be building on top of the zero-knowledge (ZK) technology.
Increasing activity on the Polygon network
In the process, this could positively affect the project’s revenue. However, there was still a dark cloud over when active building would begin. Therefore, it is uncertain when Polygon will upturn Arbitrum and Optimism’s dominance.
Meanwhile, whales were not the only contributors to the Polygon bid. According to Santiment, active addresses on the Polygon network have taken a good turn in the last seven days. The rise of the metric to 24,800 at press time meant that the level of crowd interaction with the network had significantly increased.
On the other hand, the volume, which increased prior to the Mainnet public availability, had reduced to 345.53 million in the last 24 hours. This meant that the number of MATIC transactions has been reduced. Thus, time will tell if Q2 2022 will be Polygon’s season, since Optimism has had its time, and Arbitrum was enjoying a wave of attention at press time.
- Polygon [MATIC] zkEVM Mainnet launch triggers competition in L2 ecosystem
- Optimistic rollup-based protocols (Arbitrum and Optimism) outperformed Polygon in transaction fees in the last 30 days
- Whales’ actions could potentially drive a hike in fees generated for Polygon
- Several projects building on zero-knowledge technology could positively affect Polygon’s revenue
- Active addresses on Polygon network have significantly increased, according to Santiment
- Reduced MATIC transactions in the last 24 hours, it remains to be seen if Q2 2022 will be Polygon’s season
Despite the recent reduction in MATIC transactions, there is still a lot of optimism surrounding the Polygon project. The introduction of the zkEVM Mainnet has undoubtedly been a game-changer, and it will be interesting to see how this technology develops over the coming months.
The increased activity on the Polygon network is a positive sign, and it suggests that more people are starting to take notice of the project. If this trend continues, we could see a significant increase in the number of users and projects building on the platform.
Furthermore, the fact that several projects are building on top of the zero-knowledge technology is a clear indication that the market is starting to recognize the value of Polygon. As more and more projects are launched on the network, we can expect to see a corresponding increase in Polygon’s revenue.
In conclusion, while the recent data shows that Optimism and Arbitrum are currently outperforming Polygon in terms of transaction fees, it is clear that Polygon has a lot of potential. The introduction of the zkEVM Mainnet has given the project a much-needed boost, and we could see significant growth in the coming months.
Ultimately, the success of Polygon will depend on the continued support of the community and the development of innovative projects on the platform. If the project can continue to attract new users and developers, we could be witnessing the emergence of a major player in the L2 ecosystem.