Polygon price double bottoms as Tazapay, Revolut, Paxos, and Moonpay payments rise

Polygon price crashed and erased all of the beneficial properties it made earlier this yr regardless of its sturdy fundamentals, together with its rising market share within the fee business and its rising burn price.

Polygon (POL), whose ticker was beforehand identified as MATIC, was buying and selling at $0.095, down sharply from the year-to-date excessive of $0.1853. It stays a lot decrease than its all-time excessive.

POL price crash coincided with the continued crypto market dip that has affected Bitcoin and most altcoins. It additionally occurred as Vitalik Buterin criticized layer-2 community. He believes that these networks will doubtless battle sooner or later as Ethereum has largely solved a few of the scaling challenges it had previously.

Ethereum is now considerably sooner than it was a couple of years and its upcoming upgrades will make it sooner. Additionally, its transaction prices have continued falling previously few years.

Buterin believes that layer-2 networks that can survive are these that can clear up key challenges and deal with key niches. Polygon has largely succeeded on this by specializing in the fee business. 

For instance, knowledge exhibits that it has the second-highest month-to-month USDC addresses after Solana. Its stablecoin P2P switch volume has jumped to over $39 billion. The highest gamers utilizing its chain are Tazapay, which dealt with over $687 million in January. 

Revolut dealt with over $50 million, whereas Stripe, Paxos, Moonpay, and Avenia Pay dealt with tens of millions of {dollars} in quantity. These networks will doubtless proceed experiencing extra quantity within the close to time period, benefiting Polygon.

The rising development, along with its sturdy market share within the predictions market, has led to a surge in community charges. Knowledge compiled by Nansen exhibits that its community charges jumped by double digits, whereas the burn price has soared previously few months.

Polygon price technical evaluation 

The each day timeframe chart exhibits that the POL price has retreated sharply previously few weeks, shifting from a excessive of $0.1853 in January to a low of $0.0841 final week. This drop coincided with the broader crypto market crash.

POL price has fashioned a double-bottom sample, whose neckline is at $0.1853. A double-bottom is likely one of the most typical bullish reversal indicators in technical evaluation.

Due to this fact, the most certainly POL price prediction is bullish, with the preliminary goal being at $0.1500, which is about 57% above the present degree. A drop under the important thing help degree at $0.0845 will invalidate the bullish outlook and level to extra draw back.