Investors holding POL, previously known as MATIC, may be feeling disheartened by its recent performance. The native token of Polygon has seen a significant decline, hitting new all-time lows. This begs the question – could this be an opportune moment to consider investing in POL?
While many top cryptocurrencies are striving to reach or surpass their previous price peaks, POL has been spiraling downwards, reaching a record low of $0.285 in Monday’s trading session.
The price drop to this historic low triggered oversold conditions according to the Relative Strength Index (RSI). But does this indicate a favorable time to re-enter the market and purchase MATIC at a substantial discount? Answering this question based solely on price trends would have been straightforward.
The persisting downtrend positions MATIC as less appealing compared to other digital assets this year, resulting in a lack of demand. Yet, delving deeper into Polygon’s ecosystem performance may provide a glimmer of hope for POL investors.
Could Polygon’s Metrics Revive POL Token’s Fortunes?
Despite POL being in the red for much of the past year, the Polygon platform has made significant strides in various aspects. For instance, its stablecoin market capitalization surged from $1.17 billion on November 5, 2023, to $2.08 billion exactly a year later.
Polygon’s Total Value Locked (TVL) also experienced notable growth, escalating from $772.4 million to $1.237 billion within the same timeframe. These figures indicate that the network is now better positioned for decentralized finance (DeFi) activities than ever before.
Transaction data highlighted a peak of over $17 million transactions in November 2023, followed by a considerable decline to around 3 million transactions by November 2024. Despite the drop, the November 2023 surge appears to be an isolated event that may not directly impact the token’s price.
The transaction data remained relatively robust throughout the remaining period, suggesting that network activity does not necessarily correlate with POL’s demand and price movements. This observation was further supported by the fact that Polygon did not witness negative growth in unique addresses.
As of November 4, 2024, the network boasted over 379 million unique addresses, a figure that has since risen to 470.9 million MATIC addresses. This positive growth in addresses indicates that while the market sentiment towards POL may have waned, predicting the token’s future attractiveness remains challenging.
Nonetheless, a potential surge back to its all-time highs could present a lucrative opportunity, possibly resulting in a gain exceeding 400%.