Introduction

The last year has seen crypto markets rally, with the major L1s and L2s performing strongly from a price perspective. One notable exception is MATIC, which is down 34% over the past 12 months. But despite its recent price underperformance, there have been significant developments behind the scenes.

This report looks at the potential for a Polygon revival, driven by its sharpened focus on ZK, chain aggregation, and new tokenomics.

Price Performance

Comparing MATIC to other major L1 and L2s since May 2023, it is clear that it has significantly underperformed as attention has been elsewhere. In fact, it is the only major L1/L2 that is down over the period.

As of 6 Feb 2024, it trails Polkadot,...