- Polygon is facing rising competition from the likes of Arbitrum and Optimism.
- Coinbase will launch its Layer-2 network known as Base this week.
- Polygon’s metrics made a strong improvement in Q2.
Polygon price has remained under intense pressure in the past few months as competition in the industry rises. MATIC was trading at $0.6641, the lowest level since July 6th of this year. In all, the token has plunged by more than 57% from its highest level this year.
Polygon metrics are still strong
Polygon is a pioneering blockchain project that introduced the concept of layer-2 networks. Its initial product was Polygon PoS, which is a delegated proof-of-stake (DPoS) platform on Ethereum’s network.
The developers have recently launched additional products, including Polygon zkEVM, Polygon Miden, Polygon Supernets, and Polygon ID. Polygon zkEVM is different from Polygon PoS works by bundling transactions.
Polygon has faced a lot of competition in the past few months. The biggest competition came from leading platforms like Arbitrum and Optimism. Arbitrum has a total value locked (TVL) of over $3 billion while Optimism has over $1.26 billion. Polygon has a TVL of over $1.2 billion. Further, Coinbase will launch Base, its layer-2 network this week.
Despite the competition, Polygon’s market is still vibrant. Data shows that the total fees in the ecosystem jumped from over $5.7 million in Q2 of 2022 to over $11.2 million in Q2 of 2023. The number of average daily active addresses has jumped from over 314k in Q2’22 to over 417k.
However, the average daily transactions dropped from 3.15 million in Q2’22 to 2.41 million. Total staked MATIC jumped 2.76 billion to 3.84 billion. In a statement, Messari said:
“Polygon’s Treasury concluded Q2 2023 with a holding of 1.80 billion MATIC tokens, amounting to a value of $1.12 billion. The Treasury is under the control of Polygon Technologies, which has strategically allocated the majority of its expenditures toward the scaling efforts of the Polygon network.”
Polygon MATIC price forecast
The daily chart shows that the MATIC crypto price has been in a strong bearish trend in the past few days. It has moved below the important support at $0.6907, the lowest level in September last year.
MATIC has dropped below the 25-day and 50-day exponential moving averages (EMA). The Relative Strength Index (RSI) has moved below the neutral point of 50. Further, the Stochastic Oscillator has also drifted downwards.
Therefore, Polygon price will likely continue falling as sellers target the key support at $0.5068, the lowest level on June 10th. The stop-loss of this trade will be at $0.80.
