Why Polygon, zkEVM may not revive MATIC fast enough
- Polygon PoS’s total transactions crossed the 3.2 billion mark.
- MATIC was down by over 9%, and metrics remained bearish.
Polygon [MATIC] has achieved quite a few milestones in the recent past in terms of network activity. Not only did Polygon PoS’s metrics surge, but the same trend was also noted on Polygon zkEVM’s charts.
However, even as their key stats moved up, MATIC continued to face bears’ wrath.
Polygon’s adoption is on the rise
Today In Polygon, a popular X (formerly Twitter) handle, posted a few tweets highlighting Polygon’s latest achievements on the 24th of November.
The Polygon PoS chain has reached 3.2B total transactions. pic.twitter.com/wMMKEi5JMA
— Today In Polygon (@TodayInPolygon) November 24, 2023
To begin with, the Polygon PoS chain reached the commendable number of 3.2 billion total transactions. Moreover, the blockchain’s rollup, zkEVM recorded a three-month high in daily transactions, which sat at over 100k on the 26th of November.
These milestones helped the total number of transactions on Polygon zkEVM cross the eight million mark.
Polygon zkEVM just recorded a 3 month high in daily transactions with over 100K. pic.twitter.com/6X6OmwuLep
— Today In Polygon (@TodayInPolygon) November 26, 2023
Upon further digging, AMBCrypto found that both Polygon PoS and zkEVM showed growth in the recent past. The Daily Active Addresses and Daily Transactions of both zkEVM and Polygon PoS gained upward momentum in the recent past.
The captured value also improved, as its revenue rose.
MATIC’s performance is not satisfactory
While the blockchain’s network activity grew, its native token, MATIC, failed to impress investors. According to CoinMarketCap, MATIC was down by more than 9% in the last seven days.
At the time of writing, it was trading at $0.7548 with a market capitalization of over $7 billion.
AMBCrypto’s analysis of Hyblock Capital’s data revealed that MATIC’s liquidation increased when its price touched the $0.8 mark, after which the token’s price started to drop over the last week.
The fact that MATIC’s selling pressure was high was also proven by Santiment’s data, which displayed that while Polygon’s Supply on Exchanges increased, its Supply outside of Exchanges dropped.
Negative sentiment around the token remained high last week.
Additionally, its MVRV ratio plummeted, which also played a role in MATIC’s downtrend.
Read Polygon’s [MATIC] Price Prediction 2023-24
A few of the market indicators also looked bearish. The Money Flow Index (MFI) registered a sharp downtick and Polygon’s MACD displayed a bearish crossover.
However, the Bollinger Bands suggested that MATIC’s price was entering a less volatile zone — a sign that MATIC’s price may not drop further over the next few days.