🌎 Polygon Price Falls 47% Amid Ecosystem Slowdown

Polygon Coin Price Falls Amid Ecosystem Slowdown

Polygon’s cryptocurrency, POL, has dropped to $0.3910, marking a decline of 47% from its December 2024 highs. This downturn is attributed to the slowdown in the Polygon ecosystem, which has seen a decline in active addresses and fee revenue.

Decline in Active Addresses and Fee Revenue

According to Nansen data, active addresses on the Polygon network have fallen by 12% in the last 30 days, dropping to 5.96 million. In contrast, Base, the largest layer-2 network, recorded 21.7 million active addresses in the same period. Additionally, Polygon’s transactions increased by 7% to 91.5 million, but its fee revenue plunged 38% to $835,000.

Underwhelming Performance in DeFi and NFT Markets

The total value locked in Polygon’s DeFi ecosystem has dropped to $842 million, significantly lower than Base’s $3.41 billion and Arbitrum’s $3 billion. The Polygon DeX ecosystem is also lagging, with weekly trading volume falling by 20% to $1.2 billion, while Base handled $10.7 billion in the same period.

In the NFT market, Polygon’s sales have dropped 71% in the last 30 days to $24.8 million, while Base surged by 388% to $22.7 million in sales. This decline in performance explains why Polygon was removed from the Lido DAO liquid staking in December.

Polygon Price Pattern Points to Further Downside

The four-hour chart shows that the POL token has formed a descending triangle pattern, a popular bearish sign. The token has also dropped below its 50-period moving average, reinforcing a bearish outlook. The path of least resistance appears downward, with the next key support level to watch at $0.3425.

Tip for investors: Keep an eye on Polygon’s ecosystem performance and price patterns to make informed investment decisions.

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