Polygon zkEVM Hits 11 Million Transactions, but Concerns Arise

Polygon zkEVM Hits 11 Million Transactions

Polygon zkEVM has completed over 11 million transactions, signaling high adoption and growth. This milestone was announced by “Today In Polygon,” a popular X handle that provides updates on the Polygon blockchain’s developments. The spike in transactions is correlated with a rise in unique addresses, now totaling 671,000, indicating significant user interest.

Sharp Decline in Average Gas Price

According to Polygonscan, a significant factor driving the surge in transactions is a sharp drop in average gas price. This reduction has likely attracted more users to the platform, contributing to the increase in transaction count. However, other metrics show some signs of concern.

Decline in Network Activity

Despite this milestone, Polygon zkEVM has encountered a setback in network activity. Artemis’ data shows a decrease in daily active addresses, leading to a drop in daily transaction counts. This downward trend suggests a potential decline in user engagement, raising questions about the platform’s future growth.

Lower Revenue and Competition with zkSync Era

Polygon zkEVM’s revenue has also taken a hit since the beginning of May. Comparisons with other EVMs like zkSync Era highlight this issue. While zkSync Era, launched just days before zkEVM, boasted significantly higher daily active addresses (256,000 compared to 2,900), the differences don’t end there:

  • zkSync Era’s revenue and Total Value Locked (TVL) were considerably higher than those of zkEVM.
  • zkSync Era processed over 10,000 transactions on a single day, while zkEVM managed only 10.7k transactions.

MATIC’s Price Movement

Amidst these developments, MATIC, Polygon’s native cryptocurrency, has experienced a price increase. According to CoinMarketCap, MATIC has appreciated by over 5% in the last week, trading at $0.7356 with a market capitalization of over $7.2 billion. This uptick in price has had a positive impact on investor sentiment and MVRV ratio, suggesting that more investors are turning a profit.

However, only 14% of MATIC investors were in profit at press time, indicating that the cryptocurrency and its holders still have a long way to go.