Polygon Price Prediction as Transactions, Users Jump Despite Crypto Winter

Key Insights

• Polygon price has moved sideways in the past few months.
• The network’s transactions and fees have continued rising.
• Polygon’s transactions and fees have continued rising in the past few months.

Polygon price was trading at $0.092 on Saturday, inside a range it has remained in for the past few days. POL token is hovering near its record low after falling by nearly 90% from its all-time high. This retreat has occurred despite the ongoing transaction and the active address jump.

Polygon Price Consolidating as Transactions and Users Jump

Polygon, a popular layer-2 network, has become a major winner during the ongoing crypto winter, as its role in the prediction markets and payment industry booms.

Nansen data shows that the network’s transactions and fees have continued rising in the past few months.

It had over 8.1 million active addresses in the last 30 days, a 28% monthly increase. In contrast, Ethereum network had 11 million addresses, a 10% drop. Solana’s address count also dropped by 14%.

Polygon’s active transactions also continued rising despite the ongoing weakness in the crypto industry. It had over 281 million transactions, up by 25% MoM. Most other chains, including the popular ones like Solana and Ethereum saw their transactions drop by double digits.

More data reveals that Polygon’s network continues to improve this year. For example, the volume of decentralized exchanges (DEXs) soared to its highest level since 2021 in March.

The network handled transactions worth over $8.6 billion in March, up by 27.8% from the previous month. Ethereum and Solana’s DEX volume dropped to their lowest levels in months as traders rotated to Hyperliquid.

Polygon’s growth was driven by the ongoing surge in Polymarket growth. Polymarket had over $4.53 billion in transactions in the last 30 days and $965 million in the last 7 days. The other top DEX protocols on Polygon are QuickSwap and Uniswap.

Polygon Has Become a Giant in the Payment Industry

Meanwhile, Polygon network has become a major name in the payment industry, where it has partnered with some of the biggest companies in the fintech industry like Stripe, Revolut, and Shift4 Payments.

Artemis data shows that the amount of stablecoins in the network has continued rising in the past few months. It has over $3.5 billion in stablecoin volume and 7.3 million addresses.

Most importantly, the stablecoins in the network are being used aggressively. The network’s stablecoin transactions came in at 713 million in the last 30 days, while the volume soared to $37 billion. Its stablecoin volume are about to pass Arbitrum, which handled over $38 billion in the same period.

All these metrics have led to higher fee collections by Polygon. Despite its low transaction fees, the network generated over $2.6 million in fees in the last 30 days.

Its fees are usually important as the network normally burns most of them, reducing the amount of tokens in circulation.  Unlike other chains that have large monthly unlocks, Polygon does not emit new tokens, making it highly deflationary.

Therefore, the ongoing weakness in Polygon’s price is not due to weak fundamentals. Instead, it is due to the ongoing crypto winter, which has affected Bitcoin and most altcoins.

Polygon Price Technical Analysis

The daily timeframe chart shows that the POL price has crashed in the past few months and is now hovering near its all-time low. It has dropped to $0.092 on Saturday, inside the range it has remained in for weeks.

The token has constantly remained below the 50-day moving average and the Supertrend indicator. It has already dropped below the Ultimate Support of the Murrey Math Lines tool.

The token has also formed a small descending triangle pattern, a common bearish continuation sign in technical analysis.

Therefore, the token will likely continue to fall in the near term, potentially to an all-time low of $0.0837. A drop below that price will point to more downside as it will confirm that bears have prevailed.

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