- Two converging trendlines in the daily chart drives the current correction trend in Polygon price.
- Polygon’s Proof-of-Stake network has recorded a fresh peak in stablecoin holdings, with the total value now standing at $3.57 billion.
- The coin price faces constant dynamic resistance from 20-and-50-day exponential moving averages, accentuating an intense correction trend.
POL is the native utility token for the Polygon ecosystem, and is up roughly 2% ahead of U.S. market hours on Friday. While the border crypto market showcases a slowdown in recovery momentum today amid geopolitical uncertainty, Polygon price stands amid stablecoin growth. The latest on-chain data shows a new high in stablecoin supply on the Polygon PoS network, suggesting real capital inflows and sustained utility.
Polygon PoS Stablecoin Supply Surpasses 2021 Peak at $3.57 Billion
The amount of stablecoins issued on the Proof-of-Stake chain of Polygon is at a new record high, according to a tweet from Head of Research at Lisk, Leon Waidmann.
Stablecoins deposited on the network have a total value of $3.57 billion, as of the data monitored by growthepie.com. This is the largest number since the tracking started.
It was first in September 2021 that the supply had been as high as it was, reaching approximately 3.1 billion in a season of intense market action. The figure declined drastically after that spike, reaching about $1 billion around 2022-2023.
However, the stablecoin deposits have recorded a slow increase ever since. Following a relatively flat supply throughout 2023, the supply started rising more steadily as early as 2024. The gains have also been seen to continue until 2026 when the total will have surpassed the 2021 high.
This trend is an indication of gradual accumulation as opposed to sharp increases in bits of the market excitement. An increase in the amount of stablecoins and the volume of transactions on Polygon enhances the network activity.
This spurred POL demand, the native token that pays gas fees on the PoS chain. Part of the base fees is burned, which might decrease the total supply in the long run in times of high usage. An increased activity is also conducive to staking participation because validators reward the network and get rewards based on the demand for the transaction.
Polygon Price Awaits Major Breakout Within Wedge Pattern
Over the past five weeks, the Polygon price has witnessed a slow, steady correction from $0.0118 to $0.092, registering a loss of roughly 20%. A downsloping trendline in the daily chart acted as key resistance in this fall as the broader market also struggled with the U.S.-Iran conflict.
With today’s uptick, the prices challenge the overhead trendline along with the 20-day EMA. If the sellers continue to defend this resistance, the Polygon price could plunge with renewed supply pressure to $0.0835, followed by a support trendline at $0.75.
As shown in the chart below, the Polygon price is gradually narrowing between two converging trendlines, creating a falling wedge type pattern. If stablecoin growth acts as underlying demand pressure for POL, the coin price could breach the overhead trendline, signaling a change in market dynamics.
The post-breakout rally could push the asset to the $0.1 psychological level, followed by a leap to $0.112.
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