Polygon zkEVM reaches ATH, but MATIC remains unaffected

• zkEVM’s gas price remained low, helping daily transactions reach an ATH.
• MATIC was down by nearly 4%, and a few metrics remained bearish. 

Polygon [MATIC] zkEVM continued to reach new heights as its metrics soared, reflecting increased adoption. The roll-up’s popularity got further pushed with the latest launch of the Polygon 2.0 zkEVM Saga campaign.

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

Though its adoption was on the rise, zkEVM’s TVL registered a decline over the last few days. Amidst this, MATIC also remained under the bear’s influence, as its weekly chart was red. 

Polygon zkEVM sets another record

Polygon zkEVM touched a new all-time high in terms of its daily transactions on 4 August when the roll-up’s daily transactions reached 122,000. The previous ATH was recorded on 31 July, when transactions reached 115,000.

It was interesting to see that not only in its daily transactions but, as per Artemis, after a slight dip, zkEVM’s daily active addresses also gained upward momentum. This clearly indicated high usage and adoption of the roll-up.

Source: Polygonscan

Though the recent growth could be somewhat attributed to the launch of the Polygon 2.0 zkEVM Saga campaign a few other factors were also at play. For instance, zkEVM’s gas price continued to remain low.

Additionally, thanks to the uptrend in daily transactions, the roll-up’s daily gas usage also surged substantially. 

Source: Polygonscan

If that wasn’t enough, there was more good news for the roll-up. Polygon recently revealed that the developers were working on a new mainnet update for zkEVM. To facilitate this, Polygon has temporarily paused its Polygon 2.0 zkEVM Saga campaign.

Once the update is pushed, it will be interesting to see whether it fuels further growth. 

MATIC is still bleeding 

While zkEVM maintains its achievement streak, Polygon investors are having a hard time. According to CoinMarketCap, MATIC was down by nearly 4% in the last seven days. At press time, it was trading at $0.6731 with a market capitalization of $6.2 billion.

A possible reason for the downtrend could be its increasing exchange reserve. The token’s MVRV Ratio was drastically down, which is a bearish signal. Moreover, negative sentiment around MATIC was dominant in the market.

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Nonetheless, at press time, MATIC’s stochastic was about to enter the oversold zone, giving hope for a trend reversal.

Source: Santiment

The token’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) both registered slight upticks. This suggested that the possibility of a trend reversal can’t be ruled out. Nonetheless, the Exponential Moving Average (EMA) Ribbon displayed a bearish edge at press time. 

Source: TradingView