Things look up for MATIC as zkEVM witnesses decline in…

Things look up for MATIC as zkEVM witnesses decline in…

  • Optimizations to Polygon zkEVM are expected to reduce fees by roughly 20%.
  • MATIC’s price increased by 2% in the last 24 hours, and metrics looked bullish. 

In its latest tweet, Polygon [MATIC] announced that over the next few weeks, optimizations to zkEVM are expected to reduce fees by roughly 20%. The decline in fees can be a game changer for zkEVM, as it will help attract new users. 

In the next few weeks, optimizations to Polygon zkEVM are expected to reduce fees by ~20%. This is without any compression.

But there are many ways users can optimize for fees today. Follow the thread for tips and tools on:
– On-chain transactions
– Bridging transactions

— Polygon (Labs) (@0xPolygonLabs) May 22, 2023

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

How will users benefit?

Though the fee reduction will take some time, Polygon revealed a few methods of which users can take advantage even now. As per the tweet, Ethereum’s [ETH] trading price can be tracked in order to make transactions with lower fees.

Because most of the transaction fee is for interactions with L1, users should wait for the times of day when Ethereum is cheapest. Additionally, keeping a close eye on network activity will also help. This is because transaction fees usually go down when network activity increases. 

Another timing tip: Wait for when network activity on Polygon zkEVM is high

This is counterintuitive, but fees on a rollup go down as activity increases. This is because the cost of proof generation is amortized across all transactions

— Polygon (Labs) (@0xPolygonLabs) May 22, 2023

A look at Polygon zkEVM’s performance 

After quite a few weeks of sluggish performance, zkEVM’s metrics showed immense gains. For instance, Polygonscan’s data revealed that zkEVM’s daily transactions skyrocketed. In addition to that, zkEVM’s daily gas use also increased considerably, which reflected increased usage of the roll-up. 

Source: Polygonscan

Though Polygon zkEVM’s stats looked encouraging, it still had a long way to go before catching up with its competitor, zkSync Era. According to Artemis’ data, zkSync’s daily active addresses were considerably higher than those of zkEVM.

The same trend remained true for daily transactions, as zkEVM’s figure was substantially lower than zkSync.

Source: Artemis

MATIC has finally responded positively 

After a long wait, Polygon’s daily chart finally turned green. According to CoinMarketCap, Polygon’s price increased by 2% in the last 24 hours. At the time of writing, MATIC was trading at $0.8822, with a market capitalization of over $8.1 billion.

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

A reason behind the surge might be MATIC’s declining exchange reserve, which suggests that the token was not under selling pressure. Whales seemed to have increased their holdings as the supply held by top addresses went up.

MATIC’s supply on exchanges declined while its supply outside of exchanges increased slightly. Moreover, the token also remained in demand in the futures market, as evident from its green Binance funding rate. 

Source: Santiment

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