- The daily activity of zkSync Era and StarkNet parallels that of Polygon.
- Polygon’s overall dominance in the DeFi sector remained high.
Polygon [MATIC] has dominated the L2 space in terms of activity in recent months. However, this dominance may soon be threatened by other L2 solutions.
Realistic or not, here is MATIC’s market cap in BTC terms
Upcoming L2 solutions such as zkSync Era and StarkNet have overtaken Polygon in terms of day-to-day operations. Both solutions were rumored to be launching token airdrops soon.
The hype surrounding airdrops may be enough to push activity on both networks to new heights. After the tokens for these respective networks are launched, activity on the networks may surpass that of Polygon, leaving Polygon in the dust.
Source: Artemis
Will Polygon be able to hold its position?
As for the DeFi sector, it would be safe to say that the protocol can still grow. The TVL on Poygon’s zkEVM protocol has continued to rise in recent months.
The protocol is also on its way to implement new developments on its network.
The founder of Polygon, Sandeep Nailwal, has mention that the zkEVM ecosystem is preparing for significant growth with the deployment of critical infrastructure such as Safe and Chainlink oracles, as well as user experience improvements based on early developer feedback and cost optimizations through data compression.
Source: DeFi Lama
To combat the attention drawn by other protocols related to an airdrop, Sandeep named how the network could potentially have an airdrop of its pre-existing token MATIC for its users.
The growth in the NFT sector will also help the protocol compete. Reddit’s recent partnership with Polygon has seen 8.7 million users join the Web3 space.
And these are “onchain” users! https://t.co/daIeVYdXH3
— Sandeep Nailwal | sand deep. polygon 💜 (@sandeepnailwal) May 11, 2023
However, despite this surge in activity, Polygon’s NFT growth is starting to slow down. The data from Dune Analytics indicated that the overall volume of NFT transactions on marketplaces took a huge plunge.
How much are 1,10,100 MATICs worth today
Source: Dune analysis
In conclusion, even though the competition is increasing with protocols launching airdrops and luring new addresses, Polygon can still survive in terms of activity.
However, it may need to work on declining interest in its NFTs in the future.
