Polygon’s zkEVM has faced a recent downturn in network activity, but the integration of a new update promises to bolster Layer 2’s functionality. This anticipated improvement comes as the blockchain platform seeks to recover from a slump in usage and transaction metrics.
Network Activity Decline and Recovery Signs
Artemis, an analytics group, observed a decline in Layer 2 network activity, highlighted by a significant drop in daily active addresses. This downturn paralleled a decrease in daily transactions, hinting at reduced engagement with the network. Despite these challenges, Polygon’s zkEVM has managed to enhance its Total Value Locked (TVL), especially within the DeFi sector, potentially setting the stage for a rebound.
Polygon has also made strides by launching its ETRGO update on the mainnet, which came into effect after a ten-day transitional period. The Etrog upgrade is noteworthy for its introduction of precompiled smart contracts and a revamped transaction execution method. These enhancements are expected to inject new capabilities into the ecosystem, supporting added functions such as ecAdd, ecMul, and ecPairing, among others.
Renewed Interest and Price Surge for MATIC
This update could spark renewed interest and activity within the network, potentially impacting Polygon’s core performance metrics. Alongside this technological advancement, MATIC’s market value has recently witnessed an 11% surge. Despite general market bearishness, MATIC’s price trajectory has maintained an upward trend, now trading at $0.8869 with a substantial market capitalization.
In addition to its price performance, MATIC has retained strong social engagement, underscoring its standing within the cryptocurrency community. However, sentiment analysis indicates that negative perceptions around MATIC persist despite these positive developments.