How Polygon zkEVM growth could act as a catalyst for MATIC price
|- Polygon’s zkEVM supports over $5 million in assets across 20 cryptocurrencies.
- The ecosystem made massive strides, and $2.1 million worth of assets are locked in decentralized exchanges and collateralized lending.
- MATIC price could begin its recovery from the recent decline in its price with the growth of zkEVM acting as a catalyst.
Polygon network’s zkEVM rollout has witnessed an increase in Total Value Locked. There is a spike in on-chain activity on the MATIC network, and experts expect this to fuel a recovery in the asset’s price.
Also read: Ethereum battles intense selling pressure from spike in ETH deposits to crypto exchanges
Polygon zkEVM could catalyze MATIC recovery
Based on data shared by Polygon in a recent tweet, there are over $5 million in assets on the network. zkEVM currently supports nearly 20 tokens, and the bulk of the assets is in Ethereum and USD Coin. $2.1 million worth of assets is locked across decentralized exchanges and collateralized lending.
The TVL of zkEVM has recorded consistent growth, hitting $2.25 million since April 3, 2023, as seen in the chart below:
TVL in Polygon’s zkEVM
Interestingly, there is a spike in on-chain activity; the unique wallets and daily active addresses count on Polygon zkEVM continue its upward trend.
Polygon zkEVM unique addresses chart
The rapid climb in on-chain activity in zkEVM could likely be a bullish catalyst for the blockchain’s native token MATIC.
MATIC price could recover from its 12% pullback in April
MATIC, the native token of Ethereum’s scaling solution, yielded double-digit losses for holders over the past thirty days. With the emergence of bullish catalysts in Polygon’s ecosystem, the Layer 2 scaling token could begin its recovery.
MATIC price is currently in an uptrend that started in mid-June 2022. MATIC price is currently below the three long-term Exponential Moving Averages 10, 50 and 200-day. Key resistances at $1.18, and $1.39, previously supported the token in its 2022 price rally.
MATIC/USD 1D price chart
If the MATIC price declines below the 23.6% Fibonacci level at $0.93, the bullish thesis could be invalidated. The immediate support for MATIC is $0.86.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.