Polygon’s zkEVM supports over $5 million in assets across 20 different 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.
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 are 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:
Interestingly, there is a spike in on-chain activity, the unique wallets and daily active addresses count on Polygon zkEVM continues its upward trend.
The rapid climb in on-chain activity in zkEVM could likely act as 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 mid-June 2022. MATIC price is currently below the three long-term Exponential Moving Averages 10, 50 and 200-day and there are key resistances at $1.18, $1.39, levels that previously acted as support for the token in its 2022 price rally.
In the event that MATIC price declines below the 23.6% Fibonacci level at $0.93, the bullish thesis could get invalidated. The immediate support for MATIC is at $0.86.
