Polygon zkEVM logs 11 million transactions, but there is a problem

  • Polygon zkEVM’s average gas price dropped sharply last month 
  • Both zkEVM’s active addresses and transactions were significantly lower than zkSync Era’s

Polygon zkEVM is in the news again after it hit yet another milestone, one that reflects its high usage and adoption. Despite its latest achievement, however, the EVM has to go a long way in order to compete with other popular EVMs like Starknet and zkEVM. 

New milestone

Today In Polygon, a popular X handle that shares updates related to the blockchain’s developments, recently revealed that zkEVM has successfully completed 11 million transactions. The rise in transactions corresponded to its high number of unique addresses, which touched 671k – A sign of high adoption.

AMBCrypto’s analysis of Polygonscan’s data then revealed a possible reason behind this hike in usage and adoption. According to the same, zkEVM’s average gas price has declined sharply over the last few weeks. This might have lured more users onboard which, in turn, spurred its total transactions.

zkEVM's gas price dropped

Source: Polygonscan

However, zkEVM noted a setback on the network activity front in May. According to Artemis’ data, Polygon zkEVM’s daily active addresses started to decline over the last few days. Thanks to the same, the EVM’s daily transaction count also fell, which looked concerning.

It wasn’t all well as far as captured value was concerned either. This was evidenced by the fact that zkEVM’s revenue has declined sharply since the month of May began. 

zkEVM's network activity declinedzkEVM's network activity declined

Source: Artemis

When compared with other EVMs, one can argue that Polygon zkEVM’s performance hasn’t been all that impressive. For instance, zkSync Era, which was launched only a few days before zkEVM, had a substantially higher number of daily active addresses. To be precise, while zkSync’s daily active addresses were 256k on 2 May, zkEVM only had 2.9k.

A similar trend was also seen in terms of active addresses, as zkSync’s number stood at 689k, while zkEVM processed only 10.7k transactions on the same day. Additionally, both zkSync Era’s revenue and TVL were significantly higher than those of zkEVM.

Screenshot 2024 05 04 at 4.53.02 PMScreenshot 2024 05 04 at 4.53.02 PM

Source: Artemis

MATIC’s response

It’s worth pointing out, however, that MATIC turned bullish as the aforementioned milestone was recorded.

According to CoinMarketCap, MATIC’s price has appreciated by over 5% in the last 7 days. At the time of writing, the altcoin was trading at $0.7356 with a market capitalization of over $7.2 billion, making it the 18th largest crypto on the charts. 

Read Polygon’s [MATIC] Price Prediction 2024-25

Thanks to the price uptick, bullish sentiment rose too as its weighted sentiment moved up after a dip on 2 May. Its MVRV ratio also climbed, indicating that more investors have been making a profit lately.

AMBCrypto’s analysis of IntoTheBlock’s data revealed, however, that only 14% of MATIC investors were in profit at press time. Ergo, there’s still a long way to go for the altcoin and its community of holders. 

MATIC's MVRV ratio increasedMATIC's MVRV ratio increased

Source: Santiment

Next: Ethereum’s $35 million shake-up: How ETH’s 7% hike triggered a 2-month high

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