Why MATIC is a silver lining in the current bear market
- Polygon and zkEVM’s TVL registered declines along with their network activities.
- MATIC was up by more than 1.5% in the last 24 hours, but whale activity was low.
Polygon [MATIC] is a renowned player in the DeFi space, and things have only gotten better with the launch of Polygon zkEVM. But despite having a robust ecosystem, the blockchain’s network activity and TVL have been declining.
Read Polygon’s [MATIC] Price Prediction 2023-24
Polygon DeFi in a nutshell
Notably, Today In Polygon posted a tweet on 15 September highlighting the major developments that took place in the ecosystem. QuickSwap’s launch on Polygon was one such major event, launching it towards becoming a top DEX on the blockchain.
DeFi on Polygon is HUGE!
How to get started in the rapidly evolving Polygon DeFi ecosystem?? pic.twitter.com/Etxtk48pSh
— Today In Polygon (@TodayInPolygon) September 15, 2023
Moreover, in December 2021, a proposal was approved by Uniswap [UNI] governance to deploy on the Polygon PoS chain. Since then, Uniswap has seen impressive growth and has become the leading DEX on Polygon in terms of trading volume.
Though the blockchain’s capabilities were immense in the DeFi space, its TVL has been on a declining trend, which was concerning. Not only that, but its network activity was also down, as evident from the dip in its daily active addresses and transactions.
The blockchain’s DeFi ecosystem witnessed a major boost when it launched its zkEVM. However, the rollup’s fate was similar to that of the main PoS chain, as zkEVM’s networks were also dwindling for quite some time.
Artemis’ data revealed that, like Polygon, zkEVM’s TVL also went downwards in the recent past. A similar trend was also seen in zkEVM’s active addresses and transactions.
MATIC will transform soon
While this happened, the blockchain’s native token, MATIC, turned slightly bullish. According to CoinMarketCap, MATIC was up by more than 1.5% in the last 24 hours. At press time, it was trading at $0.5278 with a market capitalization of over $4.9 billion.
The token’s exchange reserve was also declining, meaning that buying pressure was rising. MATIC’s trading volume was also high, reflecting investors’ willingness to trade the token. However, whale activity around the token was low, which was concerning.
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Things for MATIC can get better over the coming months as the token is set to undergo a transformation. As reported earlier, the blockchain’s developers on 14 September officially released a set of three Polygon Improvement Proposals (PIPs) on the 2.0 upgrade.
The first proposal mentioned how the blockchain would adopt the POL token as the native gas and staking asset of the Polygon ecosystem. The proposed changes can have a larger impact on the blockchain, which will be interesting to watch.