Polygon zkEVM's remarkable growth in TVL and transactions

The Total Value Locked (TVL) and transaction volume on Polygon's zkEVM platform has increased significantly, demonstrating extraordinary growth. This increase lays the door for decreased costs and increased use of DeFi technologies.

Timeline of Polygon

Polygon Labs, the developer of leading Ethereum Layer 2 scaling solution Polygon, has announced the rollout of Polygon 2.0, a significant upgrade designed to establish the network as the “value layer of the internet.” “Value Layer” Polygon 2.0 substantially builds upon the L2 chain's existing network.

Polygon, the platform builder for Ethereum scaling, recently unveiled their upcoming project known as Polygon 2.0. Polygon Labs and its ecosystem partners have been hinting at this development on Twitter for several days, often emphasizing the number 2.

The recent altcoin crash fueled the ongoing downtrend in MATIC price and plunged to yearly support of $0.518. From the peak of $0.95, this downfall tumbled the price by nearly 45% within a week.

Since last Friday's wMarket report, the cryptocurrency market saw outflows of $49.5 billion and currently stands at $1.06 trillion — down 4.5% from $1.11 trillion. Over the weekend, the market caps of Bitcoin (BTC) and Ethereum (ETH) fell 2.3% and 5.1% to $503.59 billion and $210.04 billion, respectively.

Polygon Labs has responded to the SEC's claims that its native token MATIC is an unregistered security. The US SEC last week labelled Polygon and other popular cryptocurrencies unregistered securities in a lawsuit filed against crypto exchange Binance.

The Securities and Exchange Commission's (SEC) recent crackdown on major crypto exchanges such as Coinbase Inc (NASDAQ:COIN) and Binance has had a wide-reaching impact on various cryptocurrencies. In response to the SEC's increased scrutiny, some exchanges like Robinhood Inc (NASDAQ:HOOD) have even gone so far as to delist certain tokens, including Polygon (CRYPTO: MATIC).

Amidst a notable price drop, blockchain data reveals that key market makers, Jump Trading and Cumberland, sent millions of dollars worth of Polygon (MATIC) to various crypto exchanges on Friday night. Analytics firm Lookonchain reported the transactions, stating that Cumberland deposited 9 million MATIC, valued at over $6.

MATIC is currently facing increased uncertainty as it has been officially classified as a security by the US Securities and Exchange Commission, as revealed in the recent filing against Binance. Consequently, the Polygon blockchain token experienced a significant drop of 31% within a week, setting a new record.

Polygon Price Analysis: Amidst the increasing bearishness in the crypto market, the polygon coin price witnessed an aggressive downfall within a fortnight. From the peak of $0.995, the coin price tumbled 45.4% to hit the psychological support of $0.509-$0.5.

The Solana Foundation has rejected the U.S. Security and Exchange Commission's (SEC) classification of its SOL token as a security. Polygon Labs also shared this sentiment, stating that they developed and deployed MATIC outside the U.S.