Key Insights:
- Polygon’s price has dropped to $0.1200, despite significant network growth after the Madhugiri hard fork.
- Over 8 million transactions were processed in one day post-upgrade, with a 93% increase in monthly transactions.
- Polygon’s active addresses and fee collection surged, supporting its deflationary token burn mechanism.
Polygon’s price has fallen to its lowest point this year, dropping to $0.1200, despite the significant growth in network activity following the recent Madhugiri hard fork. The token’s value has slid by double digits from its high of $0.2970 in September, marking a noticeable downturn for the blockchain network that has been a major player in the crypto space.
The network’s recent Madhugiri hard fork has brought substantial improvements, including a 33% increase in transaction speeds and the introduction of a 1-second block consensus. These upgrades, along with support for Ethereum’s Fusaka upgrade, have resulted in a remarkable rise in Polygon’s network transactions. Over 8.1 million transactions were processed in a single day following the update, and the network’s transaction volume has soared by 93% over the past month, now reaching 158 million.
Active Addresses and Fees See Significant Increases
The increase in transactions has also led to a 54% surge in active addresses, which now total 13 million. This rise in activity has positively impacted the network’s fees, which have grown by 27%, amounting to $778,000. Polygon’s ongoing token burns, funded by these fees, aim to offset the new POL issuance, providing a measure of deflationary pressure on the ecosystem.
Polymarket, which runs on Polygon, has played a role in further boosting the network’s activity. With a transaction volume of $4.3 billion in November, Polygon is set for further growth, particularly with its expanded presence in the United States. The network’s overall ecosystem continues to grow, underpinned by a strong base of applications like Polymarket, enhancing its attractiveness to investors and developers alike.
Price Struggles Despite Strong Fundamentals
Despite these positive metrics, Polygon’s price remains under pressure, causing concern that the token has become undervalued. A market cap comparison with other blockchain networks like Sui highlights the discrepancy. Polygon’s DeFi total value locked (TVL) stands at $1.19 billion, while Sui’s is lower at $931 million. Additionally, Polygon holds over $2.825 billion in stablecoin supply, far exceeding Sui’s $0.5 million.
On the technical front, Polygon’s price continues its downward trend, with the token currently below its key support level of $0.1520. However, the formation of a falling wedge pattern suggests a potential rebound. Should this occur, the price could rise by up to 30% to test the $0.1520 resistance level.
