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- Over the past 30 days, the Polygon zkEVM recorded a 200 percent spike in daily active addresses and a 134 percent increase in daily transactions.
- The Polygon zkEVM faces immense pressure from other layer two scaling solutions based on the Ethereum network including the zkSync Era which has a TVL of nearly 10x higher than the former.
The explosive growth of layer two scaling solutions in the recent past has put Polygon (MATIC) in a strategic position for sustainable growth in the future. The Polygon network is the third largest Ethereum-based layer two scaling solution with a total value locked (TVL) of about $857 million and more than $1.26 billion in stablecoins market cap.
Moreover, some of the top-tier web3 platforms led by AAVE, Uniswap, and Balancer have tapped into Polygon’s scaling technology. In a bid to ensure a seamless adoption of the Ethereum network, Polygon developers have been working on cutting-edge technology in the recent past including the zkEVM.
The need for cross-chain compatibility has emerged as an effort to link up blockchain technology and ensure future growth prospects for web3 and digital assets. According to Ethereum co-founder Vitalik Buterin, the future of ETH mass adoption is largely controlled by the success of the layer two scaling solutions.
The Ethereum network is facing notable competition from other layer-one blockchains like Solana (SOL), BNB Smart Chain (BSC), Cardano (ADA), and Avalanche (AVAX), among many others.
Closer Look at Polygon zkEVM Performance
The notable rise of Polygon zkEVM since its official launch has attracted significant attention from web3 developers. Moreover, the Polygon zkEVM plays a similar role as the Ethereum Virtual Machine but at a significantly lower transaction fee.
Notably, the Polygon zkEVM has attracted dozens of Ethereum-based decentralized applications (Dapps) – including quickswap, Celer cBridge, Witnet, Coinstats, and Symbiosis Finance, among many other – seeking to scale securely.
As of this report, Polygon zkEVM reported nearly half a million in cumulative number of wallets and over 24k in deployed smart contracts. Additionally, the Polygon zkEVM has a total value locked (TVL) of about $19 million and a stablecoins market cap of around $5 million.
During the past few weeks, Polygon zkEVM has recorded a more than 100 percent increase in daily transactions and daily active addresses, thus indicating a sustainable adoption. However, the Polygon zkEVM faces notable competition from other Ethereum-based scaling solutions like Arbitrum (ARB), Optimism (OP), and zkSync Era. As a result, the Polygon team must up its marketing game to web3 developers and lower its entry requirements in order to compete with other layer two scaling solutions.
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Over the last 30 days, Polygon zkEVM daily active addresses have increased 202% and daily transactions have increased 134%. pic.twitter.com/qqEhuxWYGq
— Today In Polygon (@TodayInPolygon) January 3, 2024
MATIC Price Action and Market Outlook
Polygon (MATIC) price has been attempting to break out of a macro falling trend in the recent past amid the ongoing crypto bullish outlook. As a mid-cap altcoin with a market cap of about $8 billion and an average daily trading volume of about $789 million, MATIC is undeniably on the cusp of a major breakout. Moreover, the altcoin has been consolidating in a bullish flag since November and the weekly Relative Strength Index (RSI) has consistently held above the 50-level, thus indicating an imminent bullish breakout. Worth noting that MATIC’s price has dropped about 15 percent in the past week to trade at $14.45
