- Unique addresses and monthly transactions were declining ahead of zkEVM launch.
- Metrics suggested that investors’ confidence in MATIC was declining, too.
Polygon [MATIC] has witnessed a decline in its network activity over the last few weeks. As per Dune’s chart, Polygon’s unique addresses have registered a downtrend, which was concerning for the network ahead of the zkEVM mainnet launch. The same trend was seen in the network’s monthly transactions, which also declined over the last few months.
Read Polygon’s [MATIC] Price Prediction 2023-24
MATIC’s network value also to be questioned?
It was interesting to note that while MATIC’s network usage registered a decline, Convex Finance was recently launched on Polygon and registered a growth in TVL.
— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) March 20, 2023
However, the ground reality looked a bit different as Polygon’s TVL declined in the last 24 hours. According to DeFiLlama, Polygon’s TVL went down by nearly 2% over the last day, and at press time, it stood at $1.18 billion.
This can help increase network usage
Despite the decline, there have been quite a few developments in the community, which can fuel a turnaround in terms of network usage and value. Apart from the hype around zkEVM, Polygon has also partnered with Immutable, which is a leading Web3 gaming platform.
The future of Web3 gaming🔮
Polygon Labs and @Immutable, the leading Web3 gaming platform, join forces to introduce Immutable zkEVM, powered by Polygon.
👉🏾a dedicated gaming solution using ZK technology to ACCELERATE Web3 game development 👏🏽
— Polygon Labs (@0xPolygon) March 20, 2023
As per the official announcement, Immutable and Polygon Labs are partnering to build a dedicated gaming blockchain using zero-knowledge technology to accelerate decentralized game development and bring Web3 a step closer to mass adoption.
Is your portfolio green? Check out the Polygon Profit Calculator
MATIC’s performance not on par
MATIC, however, failed to respond to this development as it was trading nearly 6% lower than that of the past week. At press time, it was valued at $1.11, with a market capitalization of over $9.6 billion. A look at MATIC’s on-chain performance suggested that investors’ sentiments around it were negative as its weighted sentiments declined.
Moreover, its latest price decline was accompanied by a slight hike in volume, which was negative. Polygon’s MVRV Ratio also drifted considerably, giving bears the upper hand in the market.