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zkSync Era and StarkNet L2 Solution Threaten Polygon’s Dominance

Published 05/13/2023, 08:15 AM
Updated 05/13/2023, 08:30 AM
zkSync Era and StarkNet L2 Solution Threaten Polygon’s Dominance

  • Rumored upcoming AirDrop boosts zkSync Era and StarkNet on-chain activities.
  • Increasing network activities of both solutions are eating into the dominance of Polygon.
  • Polygon founder has not ruled out the possibility of a future airdrop.

The rumored AirDrop for upcoming Layer 2 solutions zkSync Era and StarkNet has propelled the projects’ network activities significantly. According to reports, the increasing network activities of both solutions are eating into the dominance of Polygon, the more established Layer 2 protocol in the DeFi sector.

Source: Artemis

Polygon (MATIC) has dominated the Layer 2 space for several months with unmatched daily activity on its network. It remained the ‘go-to’ protocol for several DApps and DeFi projects entering the blockchain industry. Polygon’s impressive scalability, security, and transaction speed attracted many developers, leading to increased protocol adoption.

Recent developments around the emerging zkSync Era and StarkNet Layer 2 networks have threatened Polygon’s dominance by eating into the latter’s user base and chopping off its daily activity numbers. Initial reports suggest that the zkSync Era and StarkNet plan to launch token airdrops have promoted a surge in daily activity on both networks.

Understandably, the hype around token airdrops could increase the activity level in blockchain networks. However, the concern for Polygon and its users is the possible aftermath of the AirDrop event. There is a chance that the activity levels on zkSync Era and StarkNet would surpass that of Polygon after the networks’ launch.

Polygon’s growth potential remains valid despite the competition from zkSync Era and StarkNet. The Total Value Locked (TVL) of Polygon’s zkEVM has grown significantly in the past few months. The blockchain network is also on the verge of upgrading with new developments.

According to Polygon’s founder, Sandeep Nailwal, the zkEVM will grow significantly by deploying Safe, Chainlink Oracles, and other critical infrastructure. He noted that user experience would improve based on early developer feedback, while data compression would optimize cost.

Nailwal did not rule out the possibility of a future airdrop by Polygon to match competing protocols. According to him, there is no rule that an existing token cannot do a massive AirDrop.

The post zkSync Era and StarkNet L2 Solution Threaten Polygon’s Dominance appeared first on Coin Edition.

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