Polygon Price Update
Polygon’s price has rebounded slightly in recent days, attributed to an increase in active addresses on its network.
Recent Price Movement
Polygon (POL) reached an intraday high of $0.2460, marking its highest point since March 9, and is 24% above its all-time low. However, it still sits 70% below its peak from November last year.
This recent recovery aligns with a broader market bounce, including Bitcoin (BTC) and popular altcoins like Solana (SOL) and Binance Coin (BNB).
On-Chain Activity
According to Nansen, the network witnessed a 13% increase in active addresses over the past week, totaling 2.34 million. Transaction volume has also increased, reaching 20.7 million.
DeFi Llama reports positive trends in Polygon’s decentralized finance sector. The total value locked (TVL) increased by 5.7% over the past week, hitting $719 million. Additionally, bridged TVL exceeded $4.64 billion, while total stablecoins rose to nearly $2 billion.
Major Contributors to TVL
A significant portion of the TVL growth was attributed to Quickswap, which experienced a 577% increase in weekly TVL, reaching $103.8 million. Other decentralized applications like Morpho Blue, Aura, and KlimaDAO have also attracted notable inflows recently.
Challenges Ahead
Despite the positive developments, Polygon faces challenges as competition in the layer-2 segment grows. Its TVL remains substantially below the all-time high of nearly $10 billion.
Layer-2 competitors like Base and Arbitrum have surpassed Polygon in terms of DeFi TVL, NFT volume, and decentralized exchange activity. For instance, DeFi Llama indicates that Polygon’s decentralized exchanges processed only $3 billion in the last 30 days, compared to $23 billion for Arbitrum and $21 billion for Base.
Price Analysis
POL Price Chart
The recent daily chart reveals that POL peaked at $0.7687 following its conversion from MATIC before falling to a low of $0.1900 this month. A bullish divergence pattern has formed, with both the Relative Strength Index and MACD indicators trending upwards.
The price has now moved above the upper edge of the falling wedge pattern, a typical bullish reversal formation. Polygon’s price may continue to rise, with bulls aiming for a retest of the resistance at $0.2854, the lowest from November 4. Conversely, dropping below the support level of $0.1901 would undermine this optimistic outlook.
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