Polygon price continued its strong bull run on Friday, reaching a high of $0.14, its highest level since November 20th. It has risen for ten consecutive days, beating other cryptocurrencies, including Bitcoin, Ethereum, and XRP.
Why Polygon Price is Soaring
Polygon, one of the first layer-2 networks to launch, has done well in the past few days as investors focus on its strong fundamentals.
Data show it has become one of the fastest-growing networks in the crypto industry, with its transaction count soaring 18% over the last 30 days to 178 million. Polygon’s fees have jumped by 128% in this period to $1.9 million.
In contrast, Ethereum’s fees dropped by 38%, while its transaction count rose by 15% to over $52 million. It is also doing better than other layer-2 networks like Base and Optimism.
Polygon has benefited from the ongoing use of Polymarket, a top prediction market whose volume jumped to over $2.2 billion in the last 30 days. As a result, its total DEX volume has remained stable in the past few months, rising to $5.89 billion in December from $5.8 billion in November.
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Polygon has also become a major player in the payments industry, aided by deals with top companies such as Stripe, Shift4 Payments, and Revolut. Data compiled by Artemis shows that the stablecoin supply on the network jumped to $2.9 billion, addresses rose to 5 million, and transaction volume hit $29.1 billion.
It is also a leading player in the real-world asset tokenization industry, where its total value locked (TVL) has jumped by 5.2% to over $330 million.
Polygon network has continued to burn tokens, a move that is steadily reducing the number of tokens in circulation and lowering its inflation rate.
Additionally, POL price is rising as investors predict that it is highly undervalued after plunging to a record low. This valuation metric emerged as investors remained concerned about rising competition from the likes of Base, Arbitrum, and Optimism.
Polygon Crypto Price Technical Analysis
The daily timeframe chart shows that the POL price has been in a strong uptrend in the past few days. This rebound started after it formed a falling wedge pattern, which is characterized by two descending and converging trendlines
The token has already moved above the 50-day and 100-day Exponential Moving Averages (EMA), while the Average Directional Index (ADX) remains at 45. Also, it is approaching the 23.6% Fibonacci Retracement level at $0.1488.
Therefore, the most likely POL price prediction is highly bullish, with the next key target being at $0.50, the 50% Fibonacci Retracement level. This target is about 43% above the current level.
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