Will Polygon 2.0 overturn MATIC’s decline?
- Polygon 2.0 aimed to improve scalability and liquidity access.
- Social volume decreased, but zkEVM’s adoption might help with MATIC’s traction.
Polygon Labs, the team behind Polygon [MATIC], announced the launch of its value layer of the internet called “Polygon 2.0.” The disclosure, which went public on 12 June, would allow anyone on the internet to create and exchange information via the project’s architecture.
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Although the upgrade was not yet in full operation, Polygon shared the version 2.0 blueprint in its official statement. In its rollout plan, the Ethereum [ETH] scaling and infrastructural network users would access infinite scalability with the help of its Zero-Knowledge (ZK) feature.
“We will lay out a roadmap for how Polygon will become the Value Layer of the Internet, offering unlimited scalability and unified liquidity via ZK technology.”
Deploying the rollup as sentiment slides
In March, Polygon launched its beta version of the zk Ethereum Virtual Machine (zkEVM). But the protocol had not yet reached its peak in adoption. Some have criticized the development while others have opted for the activity of other ZK rollups like zkSync Era.
However, that is not the only challenge Polygon or MATIC has been facing, besides the unimpressive adoption of PolygonzkEVM.
According to Santiment, MATIC has struggled to get a positive perception from the crypto community. This has been the case since April. And based on on-chain data, the weighted sentiment was down to -2.20.
Used as an aggregate of positive and negative social polarity, the negative sentiment suggested that there had been more negative commentary than positive over the last two months.
Active addresses surge despite reduced MATIC search
In addition, MATIC’s network growth fell to 25,200 after a hike in the first few days of June. This indicates that new address growth has been slow and transactions by the ones recently onboarded haven’t necessarily grown to an eye-catching level.
In terms of the social volume, MATIC has fallen. And over the last few days, the metric has been on a consistent decline. The social volume considers the level of search terms across several social networks.
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When this metric increases, it means that an asset is on the radar of investors within a particular period. But the decrease in MATIC’s social volume indicates otherwise.
However, the recent Polygon 2.0 coincided with a spike in active addresses. At press time, MATIC active addresses had surged to $283,000.
Typically, the metric rises when transactions in a network increase. But when active addresses fall, it implies a decrease in sending and receiving traction.
Thus, Polygon 2.0 could impact the activity level and traction on the network. Also, its zkEVM arm resumed its increase in adoption at the time of writing.