Polygon zkEVM saw growth over the past week, while that of zkSync Era fell first.
The price of MATIC spent the past week in a narrow range.
The total value of locked assets (TVL) on Polygon [MATIC] zkEVM is up 2% in the past week, while zkSync Era registered a 12% drop in TVL over the same period, according to data from Dune analysis.
Read Polygons [MATIC] Price Forecast 2023-24
In a tweet published on July 10, on-chain analyst Tom Wan noted that prior to last week’s drop, zkSync Era’s TVL had maintained an upward trend. Wan further found that the sudden TVL drop was due to the withdrawal of 55,000 ETH (approximately $100 million) by a single Gateio Deposit address from the Layer 2 (L2) chain.
Wan also said:
“The statistics indicate that zkSync Era has many Sybil addresses (new users, a large portion of the addresses have not used arb/op before), it is likely that many of those 1.12 million unique deposit addresses belong to the same entity .”
Source: Dune analysis
Hello, Polygon zkEVM
The mainnet beta version of Polygon zkEVM was launched on March 27 and according to data from Polygon, it has since recorded 161,517 cumulative portfolios. Interestingly, only a small percentage of these wallets are actively completing trades on the L2 platform.
With an active portfolio count of 10,627 as of July 8, only 6% of the total portfolios on Polygon zkEVM participated in any kind of on-chain activity.
While the number of active wallets on the chain remained low, daily trades executed on Polygon zkEVM had surged since early June. According to data from PolygonScan, the number of daily transactions on the scale network has increased by more than 250%.
Source: PolygonScan
The reason for the growth in daily transactions on Polygon zkEVM was not far-fetched, as data from PolygonScan revealed a significant drop in the average price of gas spent on transactions on the network since May.
Source: PolygonScan
The reduction in gas rates has likely played a role in attracting new users to the platform. In addition, it would have incentivized existing users to make more transactions in the chain. This probability is supported by the increase in daily gas consumption, indicating an increased use of the zkEVM platform.
Source: PolygonScan
MATIC salespeople are now in charge
MATIC spent the past week oscillating within a narrow price range. At the time of writing, MATIC changed hands at $0.6772, registering a 1% drop in value in the past 24 hours, according to CoinMarketCap.
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On a daily chart, the main momentum indicators, the Relative Strength Index and the Money Flow Index, showed a downward trend. They were both positioned below their respective center lines. This marked a revival of the MATIC distribution.
MATIC’s increased sell-off became evident by reviewing Alt’s Directional Movement Index. At the time of writing, the strength of the sellers (red) at 21.25 rested firmly above the strength of the buyers at 18.53
Source: MATIC/USDT on TradingView
This post What Polygon zkEVM’s victory over zkSync Era means
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