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 by 86% from its highest point in November last year, a move that has erased billions of dollars in value.
Polygon Price Has Crashed Despite Bullish Metrics
The POL token has crashed this year despite the network having one of its best performances in key metrics and having some of the top metrics 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 what Base, Optimism, and Arbitrum had 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 handled over 182 million transactions in the last 30 days, up by 24%.
Polygon has also become a major player in the stablecoin industry, where many companies are selecting it. Its stablecoin supply has jumped by 30% in the last 12 months to the current $2.27 billion. The network handled stablecoin transactions worth over $29.9 billion in the last 30 days.
It recently gained top partnerships from companies like Shift4 Payments, Mastercard, and Revolut for their 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 that has made it a faster network. 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 also has continued to make millions of dollars in fees as its use has jumped in the past few years. A portion of the POL fees from Polygon PoS and AggLayer are incinerated and others are moved to stakers.
Polygon also has some of the best tokenomics in the crypto industry, with the current supply being 10.5 billion, and the maximum supply being 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
Polygon crypto price chart | Source: TradingView
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 important 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 whose two lines are 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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