Why MATIC is a silver lining in the current bear market 

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  • Poly­gon and zkEVM’s TVL reg­is­tered declines along with their net­work activities. 
  • MATIC was up by more than 1.5% in the last 24 hours, but whale activ­i­ty was low. 

Poly­gon [MATIC] is a renowned play­er in the DeFi space, and things have only got­ten bet­ter with the launch of Poly­gon zkEVM. But despite hav­ing a robust ecosys­tem, the blockchain’s net­work activ­i­ty and TVL have been declining.

Read Polygon’s [MATIC] Price Pre­dic­tion 2023–24

Polygon DeFi in a nutshell 

Notably, Today In Poly­gon post­ed a tweet on 15 Sep­tem­ber high­light­ing the major devel­op­ments that took place in the ecosys­tem. QuickSwap’s launch on Poly­gon was one such major event, launch­ing it towards becom­ing a top DEX on the blockchain.

More­over, in Decem­ber 2021, a pro­pos­al was approved by Uniswap [UNI] gov­er­nance to deploy on the Poly­gon PoS chain. Since then, Uniswap has seen impres­sive growth and has become the lead­ing DEX on Poly­gon in terms of trad­ing volume. 

Though the blockchain’s capa­bil­i­ties were immense in the DeFi space, its TVL has been on a declin­ing trend, which was con­cern­ing. Not only that, but its net­work activ­i­ty was also down, as evi­dent from the dip in its dai­ly active address­es and transactions.

Source: Artemis

The blockchain’s DeFi ecosys­tem wit­nessed a major boost when it launched its zkEVM. How­ev­er, the rollup’s fate was sim­i­lar to that of the main PoS chain, as zkEVM’s net­works were also dwin­dling for quite some time. 

Artemis’ data revealed that, like Poly­gon, zkEVM’s TVL also went down­wards in the recent past. A sim­i­lar trend was also seen in zkEVM’s active address­es and transactions.

Source: Artemis

MATIC will transform soon

While this hap­pened, the blockchain’s native token, MATIC, turned slight­ly bull­ish. Accord­ing to Coin­Mar­ket­Cap, MATIC was up by more than 1.5% in the last 24 hours. At press time, it was trad­ing at $0.5278 with a mar­ket cap­i­tal­iza­tion of over $4.9 billion. 

The token’s exchange reserve was also declin­ing, mean­ing that buy­ing pres­sure was ris­ing. MATIC’s trad­ing vol­ume was also high, reflect­ing investors’ will­ing­ness to trade the token. How­ev­er, whale activ­i­ty around the token was low, which was concerning.

Source: San­ti­ment

Is your port­fo­lio green? Check out the MATIC Prof­it Cal­cu­la­tor    

Things for MATIC can get bet­ter over the com­ing months as the token is set to under­go a trans­for­ma­tion. As report­ed ear­li­er, the blockchain’s devel­op­ers on 14 Sep­tem­ber offi­cial­ly released a set of three Poly­gon Improve­ment Pro­pos­als (PIPs) on the 2.0 upgrade. 

The first pro­pos­al men­tioned how the blockchain would adopt the POL token as the native gas and stak­ing asset of the Poly­gon ecosys­tem. The pro­posed changes can have a larg­er impact on the blockchain, which will be inter­est­ing to watch. 

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