- In addition to TVL, zkEVM’s active addresses and transactions also increased slightly.
- MATIC fell over 8% last week and the metrics remained bearish.
The past few months have Polygon [MATIC] zkEVM recorded a decline in a key metric. However, the latest data showed that the scenario changed a few days ago. To be precise, TVL on Polygon zkEVM has increased by 30% in the last 30 days. This looked optimistic before the update: the higher the TVL, the more reliable the platform or dApp is considered.
Read Polygon [MATIC] Price prediction 2023-24
Polygon zkEVM finally revives
According to Artemis’ facts, zkEVM TVL plummeted sharply over the past three months, which seemed concerning due to the rollup’s presence and performance in the DeFi space. But the latest tweet from Today in Polygon rightly pointed out that the rollup was getting back on track, as TVL rose double digits over the past month.
JUST IN:
TVL on Polygon zkEVM is up 30% in the last 30 days. pic.twitter.com/XHu4XjhPAb
— Today in Polygon (@TodayInPolygon) October 11, 2023
Not only did the rollup’s TVL register an increase, but a similar upward trend was also noted in other metrics suggesting an increase in network activity.
According to Artemis, both zkEVM’s daily active address and daily transactions have increased slightly over the past month. Despite the growth of networking activity, zkEVM‘s fees didn’t increase, which was a bit concerning.
Source: Artemis
Although zkEVM’s few numbers were up, it still lagged behind its competitors on several fronts. For example, both the TVLs of zkSync Era and Base were significantly higher than those of zkEVM. The DEX volume of the Polygon rollup also remained significantly lower than the rest of the two rollups.
Source: Artemis
MATIC is underperforming
While zkEVM’s TVL and network activity increased, MATIC‘s price action went the opposite route. According to CoinMarketCapMATIC’s price has fallen by more than 8% in the last seven days.
At the time of writing, it was trading at $0.5134 with a market cap of over $4.7 billion.
The price drop also created negative sentiment around the token, which was evident from the drop in weighted sentiment in the recent past. Nevertheless, the social volume remained relatively high.
Source: Santiment
Is your portfolio green? Check the MATIC profit calculator
If we can believe the numbers, MATIC Investors may have more reason to worry. The token’s trading volume dropped, meaning investors were unwilling to actively trade MATIC.
The MVRV ratio also fell over the past week, which could further reduce Polygon’s price in the coming days. Nevertheless, network growth remained high. From CryptoQuantMATIC’s Exchange Reserve also fell, meaning the token was not under selling pressure.
Source: Santiment
