Key Insights
- Polygon worth has been in a freefall this 12 months, shedding billions in worth.
- The community’s stablecoin quantity and transaction rely are rising.
- Technical evaluation suggests {that a} rebound is close to, as it will get oversold.
The Polygon worth has crashed to a document low since its all-time excessive, following the conversion from MATIC to POL in late 2024. POL token dropped to a low of $0.1267, down by ~83% from its highest level this 12 months. So, can its rising stablecoin transactions assist enhance the POL worth?
Polygon Price Drops Amid Stablecoin Progress
The POL worth has been in a robust downward development this 12 months, as competitors within the layer-2 trade has elevated. Its essential rivals are networks like Base and Arbitrum.
Nonetheless, there are indicators that the Polygon community is doing effectively in some areas. That will assist in enhancing its efficiency in the long run.
For instance, Polygon is likely one of the hottest gamers within the stablecoin trade. Its provide and transaction quantity have soared up to now few months.
Knowledge compiled by Artemis exhibits that the community has a stablecoin provide of $3 billion, making it one of many largest gamers within the sector. Its stablecoin transaction quantity rose by 7% during the last 30 days to roughly $30 billion.
Most significantly, the variety of stablecoin addresses has jumped by 24% within the final 30 days to just about 50 million. Moreover, the variety of stablecoin transactions elevated by 30% to 178 million throughout this era, indicating that almost all transfers are small in dimension.
Analysts consider that stablecoins can be a very powerful space within the crypto trade sooner or later. That’s as a result of demand continues to develop after Donald Trump signed the GENIUS Act into legislation earlier this 12 months.
Polygon Transactions and Charges are Hovering
In the meantime, extra knowledge compiled by Nansen exhibits that Polygon has emerged as one of many fastest-growing networks within the crypto trade. Its transactions, charges, and energetic addresses have all surged up to now few weeks.
Polygon processed 147 million transactions within the final 30 days, representing a 95% improve. This determine made it the seventh-largest chain within the crypto trade, after Solana, BNB Chain, Base, Tron, Somnia, and Aptos.
Ethereum, the most important layer-1 chain within the trade, processed 46 million transactions throughout the identical interval.
Transactions soared as the variety of energetic addresses on the community rose by 87% to 12.6 million. Additionally, its energetic addresses make it one of many largest chains, with their quantity exceeding Base’s 8.5 million and Arbitrum’s 4.1 million.
Most significantly, Polygon is earning profits, which is used to burn the POL token. It generated almost $1 million in charges in November and burned all of it.
Most of this payment is coming from its rising market share within the prediction market trade, which has globally change into extra common. For instance, Polymarket leverages Polygon’s know-how, principally due to the low transaction prices.
In consequence, DeFi Llama knowledge exhibits that the DEC quantity dealt with by Polymarket rose to $280 million within the final 30 days and $8.2 billion within the final 30 days.
Polygon Price Technical Evaluation Factors to a Rebound
The day by day timeframe chart exhibits that the POL worth has been in a robust downward development through the previous few days. It has dropped from a excessive of $0.2960 on September 3 to its present worth of $0.1268 immediately.
In addition to, the Relative Power Index (RSI) entered the oversold zone earlier this week, whereas the MACD indicator is slowly forming a bullish divergence sample.
It lately moved under the vital help degree at $0.1520, its lowest degree in April this 12 months. On the constructive facet, the token has fashioned a falling wedge sample whose two traces are about to satisfy. This worth motion signifies {that a} rebound is approaching.
Due to this fact, the token is prone to rebound as bulls goal the psychological degree of $0.2500, which is ~95% above the present degree.
Crispus is a distinguished Monetary Analyst at, bringing over 12 years of experience in cryptocurrency markets, specializing in Bitcoin and altcoins. Famend for his sharp insights on the nexus of market traits and breaking information, Crispus delivers actionable evaluation to empower buyers. His work is prominently featured throughout main platforms, together with BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his popularity as a trusted voice within the monetary world.
