The Polygon [MATIC] zero-knowledge Ethereum Virtual Machine (zkEVM) is set to launch on its mainnet in 2023. The zkEVM project was contained in the third quarter report prepared by The Tie IO (data analysis firm).
zkEVM is a scaling solution created by Polygon to increase dApps’ scalability. So what does zkEVM have to do with MATIC and its growth? Let’s find out.
A tough road ahead
The development activity metric as seen on Santiment showed a decent amount of growth on the charts. As of 29 September, this number stood at one. However, there might be an uptick when the zkEVM and other features lined up are ready to ship.
Since Ethereum’s energy efficiency increased by 99%, Polygon’s network emissions have decreased significantly. Over ninety-five percent of Polygon’s emissions originated from its integration with Ethereum, and the Ethereum merge aided in the reduction.
This made Polygon more energy-efficient and more attractive to projects that were more concerned about emissions in the ecosystem.
Despite all going well for the blockchain, MATIC has been on a bearish trend for a while now. The Relative Strength Index (RSI) was below the neutral line, while the signal and minus DI lines were above 20. These indicators pointed to a bearish trend.
On the daily time frame, the support level was set at the $0.691 region and the resistance at $1.00. A lower resistance line could be observed at $0.786, as MATIC struggled to break it since 19 September.
The price movement was largely sideways, as seen from the daily time frame chart. If it is able to break the immediate and long-term resistance levels, the price could go over $1. A further downward move might also be on the cards if the support is unable to hold.
Some of the future projects Polygon is expecting to launch include Polygon Nightfall, a privacy-focused rollup chain. This and many more improvements may impact the price trajectory of MATIC positively.