Polygon Faces Challenges Amid Market Downturn
PolygonS price took a hit on June 23, falling to its lowest point since April 9. The token, known as POL, reached a low of $0.1732. This decline reflects a broader trend of falling altcoin values. POL has lost over 77% of its value as December 2023.
The drop in Polygon’s value is part of a larger crypto market decline. The network’s market share is also shrinking due to competition from newer platforms like Base and Arbitrum. For example, Polygon’s decentralized exchanges processed $3.82 billion in transactions over the last month.
However, Coinbase’s Base chain and Arbitrum have seen higher volumes, with $29 billion and $18.9 billion, respectively.New layer-1 blockchains like Hyperliquid and Sui are also gaining ground.
On a brighter note, Polygon has seen growth in stablecoins.Its stablecoin supply rose 10% to over $2.3 billion in the past 30 days. Stablecoin transactions on Polygon increased by 44%, reaching 81.1 million. This activity mainly comes from Binance and Polymarket.
Technically, POL’s price has retreated below the 50-day moving average.It’s nearing a key support level at $0.1500. If it holds above this level, it could signal a bullish reversal. The next target would be around $0.2757. But if it drops below $0.1500,it could lead to further declines.
