A look at MATIC as zkEVM lures in more users

• zkEVM’s average gas price has been declining for several weeks.
• MATIC’s price sank by over 3% in the last 24 hours, but market sentiment remained positive. 

Polygon [MATIC] zkEVM witnessed a spike in its adoption rates as more users flocked in to the solution. However, it was interesting to see that despite the increased adoption, another key metric declined. 

Read Polygon’s [MATIC] Price Prediction 2023-24

Polygon zkEVM adoption skyrockets 

Artemis’ latest tweet revealed that zkEVM topped the list of blockchains in terms of growth in daily active addresses. zkEVM’s daily active users grew by more than 225% compared to the previous month, which was substantially higher than the rest of the blockchains.

Apart from zkEVM, Cosmos and Fantom also made it to the top three on the same list. 

A major reason behind this massive surge could be the roll-up’s gas fees. Polygonscan’s data pointed out that zkEVM’s average gas price has been declining for weeks. Lower gas fees might have attracted users to the network, resulting in a hike in active addresses.

Source: Polygonscan

Not only did daily active addresses go up, but a similar rise was also seen in the total number of unique addresses. The roll-up’s value also gained upward momentum.

This was evident from the consistent rise in zkEVM’s TVL. However, despite increased adoption, it was surprising to see that zkEVM’s daily transactions started to decline on 13 June, 2023.

Source: Artemis

MATIC’s price dropped again

While zkEVM’s performance was commendable, the same can’t be said for MATIC, as it recently fell victim to a price correction. According to CoinMarketCap, MATIC’s price declined by more than 3% in the last 24 hours, halting its last bull rally.

At the time of writing, it was trading at $0.667 with a market capitalization of over $6.19 billion. The good news was that the price decline was accompanied by a dip in its trading volume, which is a positive signal. 

Is your portfolio green? Check the Polygon Profit Calculator  

The reason behind Polygon’s price drop

CryptoQuant’s data revealed that MATIC’s net deposits on exchanges were high compared to the last seven days, suggesting increased selling pressure. Its active addresses also dropped, which by and large was a negative signal.

However, its MVRV Ratio was still high, which is a bullish signal. Sentiment around Polygon also remained positive, as evident from the rise in its weighted sentiment. 

Source: Santiment