Polygon value continued its freefall, reaching its lowest degree since April 21, because the broader crypto sell-off gained momentum.
Polygon (POL) dropped to $0.1915, down 32% from its highest level in Could and 74% under its 2024 peak. The crash has pulled its market cap down from $5.68 billion at its peak to $2 billion at the moment.
Polygon has underperformed the broader market as a result of rising competitors within the layer-2 sector. Information shows it holds a complete worth locked of $1.17 billion and $2.3 billion in stablecoin provide.
In distinction, Base, the Coinbase-backed layer-2 launched in 2023, has $5.14 billion in TVL and $4.16 billion in stablecoins. Equally, Arbitrum (ARB) holds over $3 billion in belongings and $3.5 billion in stablecoins.
Most significantly, Unichain, launched by Uniswap (UNI) in March, has already gained $1.12 billion in belongings and $316 million in stablecoins.
The Polygon token has additionally tumbled following the shutdown of Polygon zkEVM, which was initially acquired as Hermes for $250 million. The CEO cited delayed technical execution, lack of product-market match, and overly formidable objectives as key causes for the choice.
On the constructive facet, Nansen information indicates that Polygon’s community exercise is rising. The variety of transactions jumped 33% over the previous 30 days to 85.6 million, whereas energetic addresses rose 23% to six.49 million.
Its transactions and addresses are increased than a preferred community like Ethereum (ETH). Ethereum’s energetic addresses rose by 5.5%, whereas its transactions rose to over 34 million.
Polygon value technical evaluation
On the every day chart, the POL token peaked at $0.7672 in December. It has since plunged under the 23.6% Fibonacci retracement degree at $0.2950.
POL has additionally fallen under its 50-day transferring common. Moreover, each the MACD and Relative Energy Index have continued to say no.
Subsequently, the token will probably proceed dropping as sellers goal the year-to-date low of $0.1487—round 26% under the present degree. A transfer above the 50% retracement degree at $0.2195 would invalidate this bearish outlook.
