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Will Polygon 2.0 overturn MATIC’s decline?

2min Read

The web3 project wants to improve digital ownership and governance on its ecosystem. But what effect does it have on MATIC?

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  • 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.  


Realistic or not, here’s MATIC’s market cap in ETH terms


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.

MATIC network growth and weighted sentiment

Source: Santiment

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.


How much are 1,10,100 MATICs worth today?


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.

MATIC social volume and active addresses

Source: Santiment

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. 

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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