Polygon’s zkEVM Update Signals Potential Boost in Network

• Polygon’s zkEVM upgrade has been welcomed, with the update expected to boost network activity and drive MATIC prices.
• This is a welcome development for the community after zkEVM’s daily active addresses dropped sharply last week.

Polygon Labs, the team responsible for the development of the Polygon network has announced that a new update went live for zkEVM. Although the network’s native token has enjoyed gains of more than 10% in the last 7 days, its network activity has plummeted.

As confirmed earlier this week, the latest upgrade to Polygon zkEVM is now live on mainnet. The team adds that the Etrog upgrade brings support for four additional precompiled smart contracts—a major step towards becoming a full Type 2 ZK-EVM.

Following the 10-day timelock, the latest upgrade to Polygon zkEVM is now live on mainnet. The Etrog upgrade brings support for four additional precompiled smart contracts—a major step towards becoming a full Type 2 ZK-EVM.

End users don’t need to take any action—everything will… pic.twitter.com/qeMvECS5as

— Polygon Foundation (@0xPolygonFdn) February 13, 2024

With the Etrog upgrade, Polygon zkEVM took a significant step towards becoming a full-fledged Type 2 ZK-EVM by adding support for more pre-compiled smart contracts. The update has added support for ecAdd, ecMul, ecPairing, Sha256, and modexp. This will largely improve the performance of the Ethereum layer 2 network.

The upgrade is timely, with the network suffering a decline in network activity last week. This was evident in daily transactions, fees, and revenue drops. However, based on the network’s total value locked (TVL) in the DeFi space, it’s evident that the investors are still confident about the stability, security, and general health of the network.

Additionally,  Polygon recently hit 400 million unique addresses, and in January, it recorded over 15 million new unique users.

Polygon’s MATIC Signals Bullish Forecast

MATIC has in the past 7 days impressed with an increase of nearly 10%. At the time of press, the token is trading at $0.8979 after a surge of 3% in the last 24 hours.

Late last year, renowned analyst Ali Martinez predicted a bullish run due to the formation of a symmetrical triangle pattern in its weekly price chart. He observed that the pattern was hovering around the $0.96 point, and aligning with the 50% Fibonacci retracement level. He predicted that a breakout above this level could send the price to $1.82.

Earlier this month, crypto analyst crypto Rover, told his 668,000 X followers that he expects MATIC to gain by 5x-10x.

I think that $MATIC will be a safe 5-10x for the next bull run.

I’m holdings lots of it. pic.twitter.com/7q4h99OaMN

— Crypto Rover (@rovercrc) February 6, 2024

Dutch analyst Michaël van de Poppe has also made a bold prediction, noting that MATIC is headed toward the $1.25-$1.50 region, adding that the Polygon ecosystem has absorbed liquidity quickly.

Polygon which is ranked 15th based on the market cap is looking to reach its all-time high of $2.92 in the next bull market. This will only be possible if the altcoin can break above $1 and establish a higher support ahead of the bull market.