Polygon responds to SEC’s litigations, market reacts

• Polygon responded to SEC’s litigations, emphasizing its global focus and confidence in future development.
• MATIC sentiment may improve as social mentions increased.

The recent litigations by the U.S. Securities and Exchange Commission (SEC) against major crypto exchanges like Binance and Coinbase have had a ripple effect on various cryptocurrencies. In an attempt to evade the SEC’s scrutiny, exchanges like Robinhood have delisted tokens such as Polygon [MATIC].

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Polygon breaks its silence

Responding to this situation, Polygon took to Twitter to express its stance. In their tweet, Polygon conveyed their pride in being developed and deployed outside of the United States, emphasizing their commitment to the global community that supports their network.

We are proud of the history of the Polygon network – developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network. MATIC was a necessary part of the Polygon technology from Day 1, ensuring that the network would be…

— Polygon | POL (@0xPolygon) June 10, 2023

Since its inception, MATIC has played a crucial role in ensuring the security of the Polygon network, making it an integral part of their operations. Polygon also expressed gratitude towards regulators, policymakers, and the non-U.S. market, while showcasing confidence in their past actions and future development.

The crypto community has welcomed Polygon’s response and appreciated their stand against the SEC. This response could potentially improve sentiment surrounding MATIC, which has witnessed a significant decline in recent days.

According to LunarCrush’s data, social mentions and engagements related to MATIC have been increasing. If these conversations and engagements turn positive, it could have a favorable impact on MATIC’s long-term prospects.

As of now, MATIC is trading at $0.601. Network growth has notably declined in recent months, indicating a lack of interest from new addresses. However, the total number of MATIC holders continued to increase despite the falling prices.

Thus, at press time, there was still confidence among existing holders, which could potentially contribute to the resilience of MATIC.

State of the protocol

There has been a material decline in Polygon’s number of active addresses and transactions over the past few weeks. However, there has been a resurgence of activity in recent days, indicating a potential rebound in network usage.

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Polygon’s Total Value Locked (TVL) has also experienced a significant decline during this period.

However, the progress of the zkEVM (zero-knowledge Ethereum Virtual Machine) may bring about improvements in the network’s DeFi ecosystem.