Polygon price prediction as adoption, transactions, and fees soar

Polygon price has retreated and pared back some of the gains experienced earlier this year. The POL token was trading at $0">Copy link

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This is an important development as it means that each Toku user will receive a Polygon wallet by default. It will also likely draw more companies in the payroll industry to use Polygon to handle transactions.

More companies have embraced Polygon’s technology, with the most notable ones being fintech companies like Stripe, Revolut, Shift4 Payments, and Mastercard

Additionally, Polygon powers Polymarket, one of the biggest players in the fast-growing prediction industry. This integration means that Polygon handles transactions worth over $2 billion a month.

This growth has led to a surge in transactions and fees in the network, a situation that will accelerate after the recent Coinme and Sequence acquisitions.

Data compiled by Nansen shows that the number of transactions in Polygon jumped by 5% in the last 30 days to over 175 million, while the number of active addresses remained at oc 11 million.

Polygon transactions have jumped | Source: Nansen

Most importantly, Polygon is generating huge sums of money in fees. Its network fees jumped by 400% in the last 30 days to over 3 million.

The soaring fees are important for the POL price because of the token burn. Recent data shows that the POL burn rate has jumped to a record high this year, with millions of tokens being removed from circulation.

There are signs that POL is highly undervalued, a situation that happened because of the elevated competition from other layer-2 networks like Base, Optimism, and Arbitrum.

For one, unlike most tokens, Polygon does not have any token unlocks and it has a token burn mechanism that removes millions of coins from circulation a month. This is unlike a token like Sui that has large token unlocks, weaker metrics, and a higher valuation than Polygon.

Polygon price technical analysis

POL price chart | Source: TradingView

The daily timeframe chart shows that the POL price has retreated from the year-to-date high of $0.1840 to the current $0.1343. It has moved below the important support level at $0.1500, its lowest level in April last year.

The token has remained below the 50-day and 100-day Exponential Moving Averages (EMA), while the Relative Strength Index (RSI) has continued moving downwards.

Therefore, the most likely scenario is where the token rebounds in the coming weeks, potentially to the year-to-date high of $0.1840, which is about 37% above the current level.

The post Polygon price prediction as adoption, transactions, and fees soar appeared first on Invezz

Polygon price prediction as adoption, transactions, and fees soar

Polygon price technical analysis

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