While the crypto fear and greed index has returned to the greed zone Tuesday, Polygon’s price made a modest recovery, surging to $0.3340, a 10% increase from its recent low this month. Gains aside, Polygon is still currently 25% down from its September peak when it rebranded from MATIC to POL.
Nevertheless, this rebound coincided with better on chain data. Transaction volume was up to 3.1 million on Monday from 2.3 million in September, Polygon Scan reported. Polygon PoS chain utilization also jumped to 49%, as the number of unique addresses grew by 190,000 to 470 million.
Polygon Powers Polymarket’s Trading Growth
Polymarket is slated to grow alongside Polygon’s health because the platform is hosted on the latter’s network. In October, its 24d trading volume rose from an already impressive $533 million to a jaw dropping $118 million, as trading volume on their site skyrocketed to $2.08 billion.
Polygon has had its share of setbacks, though, when it comes to maintaining a market position.
With a total value locked (TVL) of $1.12 billion on decentralized finance (DeFi), it is now the third-ranked layer 2 network, behind Base and Arbitrum. In terms of decentralized exchange (DEX) trading volume, its $5.1 billion in October also was far behind the $25 billion of Base and the $15 billion of Arbitrum.
There is a good chance POL will continue their rise. The token which previously dropped to a low of $0.3050 on October 25 had since bounced higher to $0.3330. The MACD indicator creates a bullish crossover and Relative Strength Index (RSI) reached a neutral level of 50. If this trend continues, POL could break out to the 50% Fibonacci retracement level at $0.3750.
