Rising Adoption of Polygon zkEVM and MATIC’s Explosive Reaction – Is $2 in the Cards?

• Polygon’s zkEVM technology sees growing adoption and TVL, with four top roll-ups on its network.
• MATIC price predictions vary, with a potential for $2 in 2025, but market trends will play a crucial role in its future performance.

Polygon’s zkEVM technology has marked a remarkable year with its increasing adoption and impressive achievements. Co-founder Sandeep Nailwal recently highlighted a significant milestone in a tweet on X, underlining that four of the top 15 roll-ups by Total Value Locked (TVL) and adoption are built using Polygon’s zk-tech stack. This accomplishment underscores the robustness and appeal of Polygon’s zkEVM technology.

Amongst the top 15 roll-ups by TVL and adoption, 4 are built are being built using the Polygon zk-tech stack.

Admittedly, all still fairly small, total <600mn, but looks exciting in terms of the direction.@Immutable – $212mn@MantaNetwork – $228mn@0xPolygon zkEVM – $119mn… pic.twitter.com/6iYwrXYj9X

— Sandeep Nailwal | sandeep. polygon (@sandeepnailwal) December 25, 2023

Among these top four zk roll-ups, Immutable, Manta Network, and Polygon’s zkEVM hold the top three positions in terms of TVL, with $212 million, $228 million, and $119 million, respectively. This positions them prominently inside the blockchain ecosystem, demonstrating users’ faith and confidence in these systems.

According to Artemis data, the TVL of Polygon’s zkEVM has steadily risen over the last three months. Total value Locked is an important indicator representing a project’s perceived worth and security. In this sense, Polygon’s zkEVM is on the rise, indicating its increasing power in the DeFi domain.

It is noteworthy that Polygon’s zkEVM has seen a recent decrease in network utilization despite its remarkable performance. The decline in Daily Transactions and Daily Active Addresses suggests possible issues with user involvement. There is, however, cause for optimism since the platform’s average gas price began to drop following a rise on December 16 and may draw in new customers in the upcoming weeks.

MATIC Token Surge

Parallel to these developments, there has been a bullish increase in MATIC, Polygon’s native cryptocurrency. Notably, MATIC’s value increased by more than 3% in the past day. As of this writing, MATIC has a market capitalization of more than $10 billion and is trading at $1.05. Positive sentiment toward the token is demonstrated by a jump in its Weighted Sentiment, indicating that the price increase has greatly increased MATIC’s social volume.

Despite MATIC’s recent surge, it’s essential to note that its growth since January 2023 has been comparatively subdued. While MATIC has rallied by 42.6% during this period, its rivals like Solana (SOL) have witnessed exponential growth, surging over 1000%. Even Bitcoin (BTC) has outperformed MATIC, registering a more than 150% increase since January. Furthermore, MATIC’s price remains below its February high of $1.53, which raises questions about its long-term potential.

The current surge in MATIC could be attributed, in part, to the increasing movement of whales. Beginning in the middle of December, wallets with 1 million to 10 million MATIC tokens had an influx of 55 million MATIC, or roughly $44.5 million. Altogether, these wallets currently contain approximately 930.97 million MATIC, which could have an effect on market dynamics.

Matic Price Predictions

Forecasting cryptocurrency values is never an easy task. According to Changelly, MATIC’s price could dip below $1 in January 2024 but could potentially reach $2 by December 2025, suggesting cautious optimism for investors. CoinCodex, on the other hand, anticipates MATIC’s price to rise to $1.64 by the end of 2023, followed by a temporary dip in January before regaining momentum.

It is imperative to take into account the wider market context. The price of MATIC might recover its all-time high of $2.92, reached in December 2021, if the cryptocurrency markets see a bull run in 2024. A comeback like this might be profitable for new investors, as the token has now dropped by more than 63% from its 2021 peak.