Polygon’s Price Rebounds Amid Improved On-Chain Data
Polygon (POL), one of the leading layer-2 networks, experienced a slight price rebound on Tuesday as the crypto fear and greed index shifted back into the greed zone. The token rose to a high of $0.3340, representing a 10% increase from its lowest level this month. However, it remains 25% below its September peak, following its transition from MATIC to POL.
Improved On-Chain Data Boosts Polygon
Polygon’s recovery is supported by improved on-chain metrics. According to recent data, the network’s transaction volume surged to 3.1 million on Monday, a significant increase from the September low of 2.3 million. Additionally, the number of unique addresses on the network climbed to 470 million, marking an increase of 190,000 from the previous day. The Polygon PoS chain utilization also rose slightly to 49%.
Polymarket’s Influence on Polygon
Polygon has solidified its position in the blockchain industry, largely due to the success of Polymarket, a popular prediction market platform. Data shows that the largest prediction market on the network holds over $2.6 billion in assets. In October, Polymarket’s trading volume surged to over $2.08 billion, a significant increase from $533 million in the prior month. Its 24-hour trading volume reached $118 million, a trend that may continue in the coming days.
Polymarket operates on Polygon, requiring users to deposit USD Coin (USDC) on Polygon’s network to engage in trading activities.
Challenges in the Blockchain Industry
Despite these positive developments, Polygon has lost market share in key areas of the blockchain industry. The network holds over $1.12 billion in total value locked (TVL) in the decentralized finance (DeFi) sector, making it the third-largest layer-2 network after Base and Arbitrum. Moreover, Polygon’s share of the decentralized exchange (DEX) industry has also declined, with its DEX volume in October amounting to $5.1 billion, significantly lower than Base’s $25 billion and Arbitrum’s $15 billion.
Technical Analysis of Polygon
The 4-hour chart indicates that the Polygon token bottomed at $0.3050 on October 25 and has since rebounded to $0.3330, its highest level since October 25. Despite this recovery, it remains below the 23.6% Fibonacci retracement level and the 50-period and 25-period Exponential Moving Averages. The MACD indicator has formed a bullish crossover pattern, a commonly observed bullish signal. Additionally, the Relative Strength Index (RSI) is pointing upward and has moved to the neutral level of 50.
Therefore, Polygon’s price will likely continue rising as bulls target the 50% retracement level at $0.3750.
Stay updated with the latest in cryptocurrency and finance news on Global Crypto News.
#CryptoNews #BitcoinPrice