The Hype and Challenges of zkEVM: A Closer Look at Polygon and zkSync
The zkEVM sector has recently witnessed a surge in interest, with protocols like Polygon and zkSync capitalizing on the hype. Polygon’s entry into the zkEVM space has been one of the contributors to the growing attention towards zkEVMs.
One key indicator of the growth of these protocols is the increasing Total Value Locked (TVL) on their respective networks. According to data from Nansen Research, the TVL on zkSync has reached $50 million, while Polygon’s zkEVM has surged to $750,000.
Nansen Research’s team predicts that the TVL on both these networks will continue to rise as more protocols are added to the network.
However, there are potential challenges on the horizon for these protocols. Dune Analytics’ data shows a decline in the number of Ethereum deposits made through zkSync, from 40,000 to less than 10,000 in the last week. Similarly, Polygon’s transactions fell from 2,300 to 257.
Race to the Top
This decline in transactions has resulted in a fall in daily activity on both networks. In terms of market dominance, zkSync currently holds the lion’s share of the zkEVM market, with 57.7% of all activity, followed by Stark Net with 25% of the overall market share. Polygon, being a relatively new protocol, lags behind with only 1.2% of the market share.
However, the future may hold positive changes for both these protocols. For zkSync, one potential factor in its favor could be the hype around its upcoming airdrop. While the attention around the potential airdrop is mostly speculative, it could still attract users to the protocol in the long run.
On the other hand, Polygon’s existing token, MATIC, has shown increasingly positive sentiment according to data from Santiment. However, the price and network growth of MATIC still have room for improvement.
Conclusion
The hype and interest in zkEVM have driven activity on protocols like Polygon and zkSync. However, recent challenges in transactions and market dominance indicate that these protocols may face hurdles in the future. Despite this, potential factors like upcoming airdrops and positive sentiment around existing tokens could impact their performance. As the zkEVM sector continues to evolve, it will be interesting to see how Polygon, zkSync, and other protocols navigate the changing landscape.
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