Can Polygon Metrics Breathe New Life into POL?

POL (formerly MATIC) holders must be throwing punches in the air after its latest performance. The Polygon-native token extended its downside into

MATIC, now known as POL, has certainly been putting the punching bag to good use with its latest performance. The Polygon-native token extended its downturn to new historic lows, but is this the optimal time to buy back in at a steep discount?

While most of the top coins have been making attempts to either reach previous highs or set new ones, POL has been busy attaining new historic lows.

The token price hit a low of $0.285 during Monday’s trading session, marking the lowest price the token has ever attained in its lifetime.

Source: TradingView

The new all-time low price appeared to be heavily oversold on the RSI. But does this mean that it is now a good time to buy back into MATIC at the extreme discount? Based on price performance alone, this would be an easy question to answer.

The continuous downturn suggests that MATIC is easily one of the least attractive coins so far this year, hence the lack of demand. However, a closer look at the Polygon ecosystem performance might offer a glimmer of hope for MATIC holders.

Can Polygon metrics breathe new life into POL?

Even though POL was mostly in the red over the last 12 months, its native platform Polygon did grow in other areas. For example, its stablecoin marketcap was $1.17 billion on 5th November, 2023, but has since grown to $2.08 billion exactly 12 months later.

Source: DeFiLlama

Polygon’s total value locked (TVL) also achieved a net positive growth from $772.4 million to $1.237 billion during the same period. This suggests that the network is currently more ready for DeFi usage than it has ever been.

The highest number of transactions registered was over 17 million TXS in November 2023, and it has since dropped drastically to the 3 million transactions or within that region in November 2024.

However, the November 2023 spike can be viewed as an isolated event that does not necessarily reflect on price.

Source: DeFiLlama

For the rest of the time, transaction data appeared to be relatively healthy, suggesting that network activity may not be linked to POL demand and price action. This conclusion was backed by the observation that Polygon did not experience negative address growth.

The network had just over 379 million unique addresses on 4th November, 2023, and the figure has since climbed to 470.9 million MATIC.

Source: Polygonscan.com

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So, address growth has also been positive, which means the market has become disenfranchised with POL, making it difficult to gauge whether the token will regain its attractiveness.

If it does, however, it would offer one of the best opportunities especially if it could soar back to its ATHs. A rally to the top would be equivalent to a 400% plus gain.