The cost of Polygon plummeted further, hitting a record low not seen since April 21, as the widespread selling pressure in the cryptocurrency market intensified.
Polygon (POL) dipped to $0.1915, marking a 32% fall from its highest point in May and a 74% decrease compared to its projected value for 2024. This downward trend has caused the market capitalization to plummet from its peak of $5.68 billion to its current level of approximately $2 billion.
Due to increasing competition within the layer-2 sector, Polygon has struggled to keep pace with the broader market. Notably, it currently holds a total value locked of approximately $1.17 billion and boasts a stablecoin supply of around $2.3 billion.
As a researcher, I’d like to highlight the significant growth of two layer-2 solutions that emerged in 2023 – Base, backed by Coinbase, and Arbitrum (ARB). At present, Base boasts an impressive Total Value Locked (TVL) of $5.14 billion and a staggering $4.16 billion in stablecoins. Simultaneously, Arbitrum holds more than $3 billion in assets and has amassed $3.5 billion in stablecoins. These figures underscore the increasing popularity and potential of these layer-2 solutions in the blockchain ecosystem.
To highlight, Unichain – a product introduced by Uniswap (UNI) in March – has amassed an impressive $1.12 billion in total assets and holds approximately $316 million in stablecoins.
Due to the suspension of Polygon’s zkEVM project (previously known as Hermes), the value of the Polygon token has dropped. The CEO attributed this move to several factors such as delays in technical implementation, poor alignment between the product and market demands, and overly ambitious objectives.
Positively speaking, the data from Nansen suggests a surge in Polygon’s network activity. Over the last month, transaction volume has increased by 33%, reaching approximately 85.6 million, and the number of active addresses has grown by 23% to around 6.49 million.
Compared to Ethereum, it boasts more transactions and addresses in use. Specifically, Ethereum’s active addresses increased by approximately 5.5%, whereas its transaction count surpassed 34 million.
Polygon price technical analysis
On a day-to-day graph, the value of the POL token reached a high of $0.7672 in December. However, it has subsequently dropped below the 23.6% Fibonacci retracement support level, which is at approximately $0.2950.
The Polish market (POL) is now dipping beneath its 50-day moving average. Furthermore, the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are both trending downwards.
Consequently, it’s probable that the token will keep falling towards its year-to-date low of $0.1487, which is approximately 26% lower than its current price. However, if the token surpasses the 50% retracement level at $0.2195, this bearish prediction would be contradicted.
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2025-06-18 20:20