Polygon price has had a rough performance this year, with its token plunging to a record low following its transition from MATIC to POL. It dropped to a low of $0.1045, down 86% from its November 2021 high, erasing billions of dollars in market value.
Polygon Price Has Crashed Despite Bullish Metrics
The POL token has crashed this year despite the network having one of its best performances across key metrics and ranking among the top in the crypto industry.
For example, data compiled by GrowThePie shows that Polygon was one of the best-performing players in the layer-2 industry this year, helped by the popularity of Polymarket, the second-biggest player in the prediction market industry.
Polygon’s monthly active addresses have jumped by over 102% in the last 12 months to over 14 million. This figure was much higher than those of Base, Optimism, and Arbitrum in the same period.
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The network also had a faster transaction growth than other layer-2 networks in the crypto industry. Its transaction count in the last 12 months jumped by 89% compared to Base’s 62%. Polygon processed over 182 million transactions in the last 30 days, up 24% from the previous 30-day period.
Polygon has also become a major player in the stablecoin industry, with many companies choosing it. Its stablecoin supply has jumped by 30% in the last 12 months to the current $2.27 billion. The network processed stablecoin transactions totaling over $29.9 billion in the past 30 days.
It recently secured top partnerships with companies like Shift4 Payments, Mastercard, and Revolut for its stablecoin payments. Shift4 Payments is a major company with a market capitalization of over $5.4 billion, while Revolut has millions of customers and a valuation of over $70 billion. Other companies using Polygon for payments are Rain, Coinbase, and MoonPay.
Meanwhile, Polygon recently introduced the Madhugiri upgrade, which has made it faster. It reduced the block time to 1 second and boosted its throughput to 1,400 transactions per second from 1,000. The upgrade also improved its integration with Ethereum’s Fusaka upgrade.
Polygon has also continued to generate millions in fees as its use has bounced over the past few years. A portion of the POL fees from Polygon PoS and AggLayer is incinerated, and the remainder is moved to stakers.
In addition, Polygon has some of the best tokenomics in the crypto industry, with a current supply of 10.5 billion and a maximum supply of 12.1 billion. Unlike other tokens, there will be no more token unlocks in the future, which is a good thing.
POL Price Technical Analysis
The daily timeframe chart shows that the Polygon price has been in a strong downward trend in the past few months and is now at its all-time low. It has moved below the critical support level at $0.1520, its lowest level in April, confirming the bearish outlook.
On the positive side, the token has formed a giant falling wedge pattern, with its two lines about to converge. A wedge is one of the most popular bullish reversal signs in technical analysis.
Therefore, the most likely Polygon crypto price prediction is bullish, with the initial target being at $0.1520. A move above that level will point to more gains, potentially to the key resistance level at $0.2970, its highest point in August.
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