Polygon Trails Behind StarkNet and zkSync Era Amid Rising Competition

• StarkNet surpasses Polygon in the zkEVM sector, experiencing a surge in TVL and network activity.
• Despite Polygon’s underperformance in the zkEVM market, MATIC prices continue to rise, buoyed by increasing numbers of token holders.

2023 has witnessed a surge of newcomers in the zkEVM (zero-knowledge Ethereum Virtual Machine) sector, leading to a competitive market landscape. Polygon [MATIC], a recent participant in this arena with its newly launched zkEVM network, is facing significant challenges from rival platforms.

StarkNet Outshines Polygon

Leading the pack in this burgeoning market is StarkNet. Over the past fortnight, StarkNet has seen its total value locked (TVL) balloon to $24.46 million, alongside a spike in the volume of transactions on its network.

This stark growth puts StarkNet well ahead of Polygon’s zkEVM offering. According to data from Artemis, the number of active addresses on the Polygon zkEVM network currently sits at just 8,540. Comparatively, the zkSync Era platform boasts an impressive 197,840 addresses, with StarkNet holding its own with 80,000.

To regain competitive footing, Polygon must expedite the development of its zkEVM network. As part of its strategic roadmap, the protocol has increased partnerships and collaborations within the crypto sector. A recent example includes an alliance with Rango, integrating the zkEVM into its cross-chain protocol. This collaboration aims to provide users with the convenience, speed, and security needed to smoothly swap tokens between any blockchain and Polygon’s zkEVM network.

A spike in the popularity of the zkEVM protocol would likely stimulate MATIC’s prospects, the native token of the Polygon network.

A Silver Lining for MATIC

Despite the stiff competition faced by Polygon in the zkEVM sector, MATIC’s price has displayed encouraging resilience. At the time of writing, MATIC traded at $0.742, reflecting a significant appreciation over the past month. This surge has been largely driven by an increase in the number of addresses holding MATIC.

However, it’s worth noting that the network’s growth has seen a slump over the past week, indicating that new addresses are not trading MATIC as frequently as they once did. If this trend continues, it could pose a risk to MATIC’s future price performance.

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