#write2earn The rise and Fall of $MATIC : #polygon Native Token Decline and $ARB #arbitrum taking advantage from that

The once-beloved native token of the Polygon ecosystem, MATIC, has fallen out of favor among crypto traders after experiencing a notable decline in value over the past year.

While MATIC has seen a staggering 32% decrease, its rivals in the layer-2 coin space, such as IMX, OP, and SKL, have seen significant increases ranging from 46% to 216%. Even Arbitrum’s ARB, which is relatively new, has outperformed MATIC in just six months.

This decline in MATIC’s performance starkly contrasts with its impressive run in 2021 when the token consistently achieved triple-digit price gains, even during corrective phases of the bull run. The Polygon ecosystem comprises Polygon PoS and Polygon zkEVM, each utilizing different technologies for scalability. While zkEVM faces challenges with transaction validation compared to solutions like Optimism and Arbitrum, which are expected to benefit more from Ethereum’s upcoming Dencun upgrade.

Optimism and Arbitrum, utilizing optimistic rollups, stand to gain from reduced transaction costs post-upgrade, unlike zk rollups like Polygon, which still face high transaction costs due to frequent fraud-proof posting. Additionally, the departure of former Polygon President Ryan Wyatt to Optimism has potentially impacted MATIC’s growth efforts, as Wyatt was instrumental in securing major partnerships for Polygon.

Arbitrum emerges as a preferred blockchain for traders, boasting impressive trading volumes and a significant amount of assets locked in its decentralized finance protocols. Meanwhile, MATIC struggles to maintain its position, facing tough competition and potential overvaluation concerns at the start of the current crypto market uptrend. As other layer-2 coins catch up, MATIC’s relative valuation appears less compelling compared to its competitors.