- Polygon zkEVM activity paled in comparison to StarkNet and zkSync Era.
- Polygon usage and MATIC market cap remained decoupled.
Polygon [MATIC] performs well in the cryptocurrency space, with daily active users on its network remaining consistent throughout market cycles. However, the underperformance in the zkSync space may affect the future growth of the protocol.
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Getting behind
Based on Artemis data, transaction volume on Polygon’s zkEVM reached 14,780, indicating lower activity compared to other protocols such as StarkNet and zkSync Era. At press time, StarkNet recorded 214,900 daily transactions, while zkSync Era boasted 663,690 daily transactions.
The increase in activity on StarkNet and zkSync Era can be attributed to AirDrop hunters waiting for token drops on both protocols. However, as previously seen with Arbitrum, if these protocols retain users, they could see significant growth and give Polygon a run for its money.
Source: Artemis
The decrease in activity on the Polygon protocol may also affect MATIC. However, at the time of writing, the use of Polygon and the price of MATIC were not directly related.
A strange relationship
According to Messari’s data, the relationship between Polygon’s cumulative market cap and user base doesn’t seem to be moving together on a holistic level. Instead, their movements can be divided into three different phases.
.@0xPolygonThe cumulative market cap and user base don’t seem to be moving together, at least not on a holistic level.
Rather, there are three distinct phases in their movements:
+Phase 1: Growth
+Phase 2: Deviation
+Phase 3: maturation pic.twitter.com/sYnugoD5Pu— Messari (@MessariCrypto) May 22, 2023
In the first phase, labeled “Growth”, user activity lags market cap growth by about two months, with a correlation coefficient of 0.96. This suggests that as Polygon’s market cap grows, so does user activity, albeit with a slight lag.
The second phase, called “Deviation”, shows that market cap growth is mainly driven by the performance of MATIC, Polygon’s native token. However, during this phase, user growth stagnates, indicating a mismatch between market cap expansion and user base development.
Read Polygons [MATIC] Price forecast 2023-2024
Finally, in the third stage, known as “Maturation”, Polygon’s user base shows independent growth regardless of market cap fluctuations. This suggests that the adoption and expansion of the Polygon platform continues to attract users, even when market cap dynamics do not directly affect user activity.
Source: Messari
What is MATIC so far?
After testing the $1,056 resistance level on April 26, the price of MATIC fell 19.43%. At the time of writing, MATIC was trading at USD 0.851. The RSI had dropped significantly over the past few days, suggesting that momentum was with the MATIC sellers right now.
Source: TradingView
