Polygon zkEVM’s new milestone – A boon for MATIC?

• Despite the rise in TVL, zkEVM’s network activity dropped last week.
• MATIC was up by over 4% in the last 24 hours, but market sentiment remained bearish. 

As per a tweet from Today in Polygon on the 27th of February, Polygon [MATIC] zkEVM’s TVL reached a new all-time high of $158 million. 

However, when AMBCrypto checked Artemis’ data, a different story was revealed. As per our analysis, the L2’s TVL had dropped over the last seven days.

Source: Artemis

The network activity followed a similar trend. After registering spikes on the 24th of February 2024, both zkEVM’s daily active addresses and daily transactions plummeted.

Things in terms of captured value also did not look optimistic, as zkEVM’s fees and revenue followed a similar negative trend in the last week. 

MATIC turns bullish

Even as Polygon zkEVM’s network activity dropped, MATIC’s price action turned bullish. According to CoinMarketCap, the token’s price shot up by over 6% in the last seven days.

In the last 24 hours alone, the token’s value increased by more than 4%.

At the time of writing, MATIC was trading at $1.05 with a market capitalization of over $10 billion. The token’s trading volume also surged by more than 100% in the last 24 hours.

Thanks to the recent uptick, MATIC’s Price Volatility 1w gained upward momentum after days of decline.

However, it was surprising to see that the price uptick did turn sentiment around the token bullish, as its Weighted Sentiment remained in the negative zone. 

Source: Santimemnt

Read Polygon’s [MATIC] Price Prediction 2024-25

Though bearish sentiment was dominant, a few of the metrics looked bullish on MATIC. For instance, the token’s MVRV Ratio registered an uptick on the 26th of February.

Polygon’s Network Growth also remained high, meaning that more new addresses were created to transfer the token, which was yet another positive signal amidst a bull rally. 

Source: Santiment