Polygon’s cryptocurrency (POL) has witnessed a significant downturn in value in 2025, nearing its lowest point of the year amid a continuous decline. By July 4, the token had fallen to $0.1800, marking a loss exceeding 76% from its peak price earlier in the year. The sustained decline has erased over $4 billion in market capitalization, shrinking Polygon’s total market value from approximately $6 billion down to just $1.88 billion.
Despite the challenges facing POL’s valuation, recent network activity suggests potential signs of revival. Most notably, Polygon recently overtook Ethereum in the weekly volume of non-fungible token (NFT) sales for the first time. Data revealed Polygon-based NFT transactions surged by 52% during the past seven days, amounting to approximately $24 million. Ethereum’s NFT sales, in contrast, recorded a 5.7% decrease, stabilizing around $23 million over the same timeframe.
Polygon’s impressive NFT volume spike was primarily driven by Courtyard, a collection responsible for over $18 million in sales in the last week alone. Other notable NFT sets on the Polygon network included DNS, registering around $4.9 million, along with OKX NFT Creation, which contributed to overall transaction volume growth.
Beyond the NFT space, the Polygon network has also expanded its presence within the stablecoin market, driven mainly by increasing use of Polymarket. Recent analysis showed Polygon’s stablecoin supply increased by 8.5% in the past month, climbing to approximately $2.4 billion. Transactional activity also rose substantially, showing a 39% increase in total transactions, reaching around 92.6 million during the same time period.
However, Polygon faces growing competition from rival layer-2 scaling solutions, potentially limiting capacity to fully rebound. While Polygon currently has roughly $1.2 billion in total value locked (TVL), newcomers like Unichain have rapidly accumulated a significant market footprint. Unichain, a relatively young network, has already drawn around $1.16 billion in TVL, while Base, another competitor, boasts around $4.9 billion in TVL and significant decentralized-exchange turnover, surpassing $28 billion monthly.
From a technical perspective, Polygon’s chart suggests potential for a bullish reversal. On the daily chart, POL has formed a double-bottom pattern at around $0.1500, presenting potential support, while the “neckline,” located near $0.2755, represents the key hurdle to confirm upward momentum. This neckline coincides roughly with the 23.6% Fibonacci retracement level, further reinforcing its significance.
Additionally, POL’s price is moving within a falling-wedge formation, typically considered a bullish reversal indicator characterized by progressively narrowing parallel downtrend lines converging towards a potential breakout point. If a bullish breakout transpires, initial upside targets would project a potential surge toward the $0.2755 resistance level—potentially representing a 53% price gain from current levels. Conversely, if the price breaches the double-bottom support around the $0.1500 mark, the optimistic scenario would be invalidated.
Source: https://westislandblog.com/
