Polygon price remained in a freefall this week, even as the network performance accelerated. POL token was trading at $0.1290, close to its all-time low after the conversion from MATIC last year.
Polygon Transactions and Addresses are Soaring
Polygon price has slumped even as third-party data showed that it was one of the fastest-growing players in the crypto industry. According to Nansen, the number of transactions on the network soared by 94% in the last 30 days. This growth made it the fourth-fastest-growing chain after Monad, Metis, and Base.
Polygon network is also seeing more user growth and fees. Its active users rose by 87% to 12.6 million. In contrast, other networks like Base, ZkSync, Tron, and Sei lost users in this period.
Polygon’s growth is being fueled by the ongoing growth of Polymarket. Polymarket has become one of the fastest-growing players in the prediction market.
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Data shows that the decentralized exchange (DEX) volume on Polygon rose to $278 million in the last 30 days and $8.18 billion in the previous 30 days.
Polymarket’s DEX volume rose to $136 million in the last 24 hours and $3.7 billion in the previous 30. Its performance in he network was higher than other popular chains ike Uniswap and Quickswap. This growth will likely accelerate now that Polymarket has relaunched in the USA.
Polygon is also seeing more traction among companies. For example, it was recently selected by Revolut, the $70 billion UK neobank to handle its stablecoin payments. As a result, the number of transactions in the network has soared. Its volume in he last 30 days soared by 6.6% to $29 billion.
Polygon Price Technical Analysis
POL price chart | Source: TradingView
The daily chart shows that the POL price has crashed despite its encouraging metrics. It has plunged from a high of $0.7672 in December last year to $0.1292 today.
This decline is likely because of the growing competition in the layer-2 industry from networks like Base and Arbitrum. Polygon has also remained in the sidelines, with not a single company filing for its ETF.
Polygon price has remained below all moving averages and the important support level at $0.1517, its lowest point in April last year.
The token remains below the Supertrend indicator and the 50-day moving average. Therefore, the most likely scenario is where it continues falling, with the next key level to watch being at $0.10. A move above the resistance a $0.1517 will invalidate the bearish outlook.
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