Why Polygon has its work cut out
- StarkNet witnessed a rise in TVL and activity, leaving Polygon zkEVM behind.
- MATIC’s price continued to rise as the number of tokePreview (opens in a new tab)n holders increased.
Throughout the year, the zkEVM sector has experienced a notable influx of new competitors, leading to an increasingly crowded market. One of the recent entrants in this domain was Polygon[MATIC], which introduced its zkEVM network recently. However, despite the protocol’s dominance in other sectors, it was being overshadowed by other competing platforms at press time.
Is your portfolio green? Check out the Polygon Profit Calculator
A race to the top
Starknet was one of the protocols that has shown consistent growth in this sector and outperformed Polygon. Over the last 2 weeks, the TVL of Starknet grew to $24.46 million. Additionally, the number of transactions occurring on the network also surged.
Starknet TVL and Transactions both showing especially strong growth the past 2 weeks. pic.twitter.com/1qWVVRWDXV
— Patrick | Dynamo DeFi (@Dynamo_Patrick) July 23, 2023
Polygon lagged behind both Starknet and zkSync ERA in this department. At press time, the number of active addresses on the Polygon zkEVM network just amounted to 8,540 according to Artemis’ data. On the other hand, zkSync Era had acquired 197,840 addresses on its network. Starknet came in second, with the number of addresses amounting to 80,000.
Polygon will have to pick up its pace in terms of development on its zkEVM network so that it can compete with these protocols in the future. The protocol has increased the number of partnerships and collaborated with many protocols in the crypto sectcor.
Recently, Polygon established a collaboration with Rango to integrate the zkEVM into its cross-chain protocol. As a result of this integration, users will now have the convenience, speed, and security to swap their tokens seamlessly between any blockchain and Polygon’s zkEVM network.
If the popularity of the zkevM protocol rises, it would have a positive impact on MATIC.
Realistic or not, here’s MATIC market cap in BTC’s terms
MATIC holders stay positive
At press time, MATIC was trading at $0.742. Its price grew significantly over the last month. One of the reasons for the growing prices was the surge in the number of addresses holding MATIC. However, despite this, the network growth of MATIC plummeted over the last week.
This indicated that new addresses were not exchanging MATIC as frequently as they once were. The lack of interest from new addresses could be detrimental to MATIC’s price in the future.