Polygon Faces challenges but Shows Promising Signs
Polygon’s price has been declining this year, nearing its lowest point. On July 4, it hit $0.1800, a 76% drop from its peak. This fall wiped out over $4 billion in value, reducing its market cap to $1.88 billion.
Despite the price dip, Polygon is making strides in the NFT market. According to CryptoSlam data, Polygon’s weekly NFT sales surpassed Ethereum’s. Sales on Polygon rose by 52% to $24 million, while Ethereum’s fell by 5.7% to $23 million. Courtyard, a top NFT collection on Polygon, drove much of this growth with over $18 million in sales.
Polygon is also gaining ground in the stablecoin sector. Polymarket’s efforts have boosted the stablecoin supply on Polygon by 8.5% in the last 30 days, reaching $2.4 billion. Transactions have surged by 39% to 92.6 million.
However, Polygon faces stiff competition from other layer-2 networks. Unichain, as an example, has reached $1.16 billion in total value locked (TVL),while Base holds over $4.9 billion in TVL.
Technical analysis suggests a possible turnaround. The daily chart shows a double-bottom pattern at $0.1500,with a neckline at $0.2755. A falling wedge pattern indicates a potential bullish breakout. If this happens, the price could rise to $0.2755, a 53% increase from current levels. But a drop below $0.1500 would negate this bullish outlook.
Key points:
- Polygon’s NFT sales outpaced ethereum’s.
- Stablecoin supply on Polygon increased by 8.5%.
- A bullish breakout could push the price to $0.2755.
