- Polygon’s Etrog innovation zkEVM enhances support for smart contracts, promising to boost L2 network performance.
- Despite a decline in activity, the upgrade could revitalize zkEVM, increasing value and transactions on the network.
Could Polygon’s recent zkEVM innovation revive its network activity? Polygon’s zkEVM entelechy rolls out a revamp to its core network, portending potential beneficial reverberations in L2 network momentum.
The Etrog modification at the core of Polygon zkEVM has enriched support for pre-made lucid contracts. MATIC’s valuation rose 6% in the last week.
Despite this, the week did not go smoothly for Polygon’s [MATIC] zkEVM, testifying to a slump in its network vibe.
Nonetheless, it has been proclaimed that a fresh advancement has been incorporated into zkEVM, auguring a propitious impact on L2 functionality in the coming dawn.
Polygon zkEVM positive signs
A recent analysis has revealed a decline in L2 performance, particularly as far as network activity is concerned. Daily active addresses on zkEVM experienced a steep decline last week.
This phenomenon led to a decrease in daily L2 transactions, hinting at dwindling network usage. The situation was no more understandable to the value trapped by Polygon zkEVM, seeing its rates and revenues decrease.
Source: Artemis
However, zkEVM has shown resilience in the DeFi sector, with its TVL (Total Value Locked) seeing an increase. Despite the slowdown in L2 network activity, there is a hidden resource that could reverse this trend.
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
Polygon has issued a statement via Twitter, noting that zkEVM’s latest ETRGO update is now operating on the mainnet, following the 10-day timelock period for the network upgrade.
According to the official statement, the Etrog update provides support for supplementary precompiled smart contracts and a revamped methodology in transaction processing.
Specifically, the upgrade has incorporated support for ecAdd, ecMul, ecPairing, Sha256 and modexp. Given the introduction of novel support and functionality, it is plausible that it will assist in amplifying network activity and value capture. It will be of interest to observe the impact of this on key zkEVM metrics.
MATIC adopts a bullish stance
Inline with the rollout of its new upgrade, MATIC’s share price has adopted an uptrend. According to CoinMarketCap data, MATIC has seen a rise of over 11% in the last 24 hours, but is now down 0.79% due to a correction.
Indeed, even in a generally bearish market, MATIC’s daily chart has remained in shades of green.
At the time of writing, MATIC was trading at $0.8869, boasting a market cap in excess of $8.5 billion.
The token’s social volume has remained high over the past week, evidencing its popularity. However, negative sentiment towards MATIC persists, as reflected by its Weighted Sentiment.
