MATIC loses to ‘optimist’ demand, but are whales planning a comeback

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  • Arbi­trum and Opti­mism reg­is­tered bet­ter num­bers in trans­ac­tion fees than Polygon
  • MATIC whales have been accu­mu­lat­ing since the web3 project’s offi­cial launch of its zero-knowl­edge network

The launch of the Poly­gon [MATIC] zkEVM Main­net could set in motion a com­bat among projects in the lay­er two (L2) ecosys­tem. Sure­ly, all, includ­ing Arbi­trum [ARB] and Opti­mism [OP], have their strengths. How­ev­er, Poly­gon not­ed that zkEVM would improve on the scal­ing effect and improve its cur­rent numbers. 

Real­is­tic or not, here’s MATIC’s mar­ket cap in OP’s terms

The rollup race is in full-fledged mode

But before the Poly­gon event, these opti­mistic rollup-based pro­to­cols made more trans­ac­tion fees than the eighth-largest blockchain. As shared by The Rollup, using Token Terminal’s data, both Arbi­trum and Optimsm out­per­formed Poly­gon in the last 30 days.

This data implies that the num­ber of address­es reg­is­ter­ing on the opti­mistic rollup net­work was high­er. The same goes for the trans­ac­tions made. And, in ret­ro­spect, Polygon’s rev­enue decreased For Arbtirum, this could be con­nect­ed to the recent­ly dis­trib­uted Air­Drop, which caused FOMO and FUD. Many also seem to view the Arbi­trum ecosys­tem as a poten­tial long-term favorite; hence, the rapid growth in the num­ber of users.

The rea­son for Optimism’s growth was unclear even though it was the L2 star of Q3 2022. How­ev­er, it was pos­si­ble that the action of MATIC whales could make way for the Polygon’s resur­gence. This was because the num­ber of address­es hold­ing 1,000 to 100,000 worth of the token had increased their hold­ings since the zkEVM pronouncement.

Polygon's market cap and MATIC whale accumulation

Source: San­ti­ment

Usu­al­ly, this ges­ture con­firms investor sen­ti­ment towards bull­ish­ness and price action. How­ev­er, an increase in trans­ac­tions, if sus­tained, could also dri­ve a hike in fees gen­er­at­ed. Also, Poly­gon also con­firmed that sev­er­al projects would be build­ing on top of the zero-knowl­edge (ZK) technology.

Increasing activity on the Polygon network

In the process, this could pos­i­tive­ly affect the project’s rev­enue. How­ev­er, there was still a dark cloud over when active build­ing would begin. There­fore, it is uncer­tain when Poly­gon will upturn Arbi­trum and Optimism’s dominance.

Read Polygon’s [MATIC] Price Pre­dic­tion 2023–2024

Mean­while, whales were not the only con­trib­u­tors to the Poly­gon bid. Accord­ing to San­ti­ment, active address­es on the Poly­gon net­work have tak­en a good turn in the last sev­en days. The rise of the met­ric to 24,800 at press time meant that the lev­el of crowd inter­ac­tion with the net­work had sig­nif­i­cant­ly increased.

Polygon [MATIC] active addresses and volume

Source: San­ti­ment

On the oth­er hand, the vol­ume, which increased pri­or to the Main­net pub­lic avail­abil­i­ty, had reduced to 345.53 mil­lion in the last 24 hours. This meant that the num­ber of MATIC trans­ac­tions has been reduced. Thus, time will tell if Q2 2022 will be Polygon’s sea­son, since Opti­mism has had its time, and Arbi­trum was enjoy­ing a wave of atten­tion at press time.

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