Polygon price carves out a double bottom as Tazapay, Revolut, Paxos, and Moonpay volumes soar
Polygon’s native token POL, formerly known under the MATIC ticker, has surrendered nearly all of its gains from earlier in the year, even as the network’s real-world usage and payment ecosystem continue to expand. The coin was recently changing hands around $0.095, a steep pullback from its year-to-date peak near $0.1853 and still far below its all‑time high.
This price weakness has unfolded in parallel with a broad risk-off move across the crypto market that has dragged down Bitcoin and most major altcoins. The selloff has overshadowed a series of positive on-chain and fundamental developments for Polygon, particularly in the area of payments and stablecoin activity.
The downturn also comes against a backdrop of renewed debate over the future of Ethereum layer‑2 (L2) networks. Ethereum co‑founder Vitalik Buterin has argued that L2s face tougher conditions than many initially expected. He highlighted that progress toward fully decentralized “stage 2” rollups and seamless interoperability has been slower and more complex than early roadmaps suggested, while Ethereum’s base layer (L1) itself has become faster and more efficient. Upcoming Ethereum upgrades, combined with already lower transaction fees compared with just a few years ago, raise the bar for L2s: only those with clear value propositions and strong niches are likely to thrive.
In that context, Polygon’s strategy looks increasingly focused and deliberate. Rather than competing purely as generic scaling infrastructure, the network has doubled down on payments, stablecoin transfers, and enterprise-oriented use cases. This specialization is starting to show up in hard numbers.
On-chain data indicates that Polygon now consistently ranks among the top networks for stablecoin usage. It boasts the second‑largest monthly count of USDC addresses after Solana, underscoring its role as a major rail for dollar‑denominated value transfer. Peer‑to‑peer stablecoin transfer volume on Polygon has surged beyond 39 billion dollars, a level that puts it firmly in the top tier of payment-focused blockchains.
A key driver of this momentum has been the integration of prominent fintech and payment platforms. Tazapay has emerged as one of the largest players using the Polygon chain, processing over 687 million dollars in volume in January alone. Revolut, the global digital banking app, facilitated more than 50 million dollars over the same network. Other heavyweights, including Stripe, Paxos, Moonpay, and Avenia Pay, are also routing millions of dollars in transactions through Polygon. Each of these integrations deepens the network’s footprint in real-world payments and improves its likelihood of sticky, recurring usage rather than speculative bursts of activity.
This growth is not limited to payments. Polygon has also built a significant presence in prediction markets and other on-chain applications where low fees, fast settlement, and composability are critical. As activity across these sectors has risen, the network’s fee revenue has increased accordingly. Analytics show Polygon’s fees climbing at a double‑digit pace in recent months, while its token burn rate has accelerated. A higher burn rate, all else equal, can reduce token supply over time and add a deflationary element to the asset’s long-term tokenomics.
From a technical perspective, however, POL’s price performance has been decisively bearish in the short term. On the daily chart, the token has slid from its January high around $0.1853 to a recent trough near $0.0841. This steep correction tracked the broader market crash, suggesting macro sentiment and liquidity conditions were major drivers of the move rather than Polygon-specific issues.
Yet the same daily chart also reveals a potentially constructive pattern: POL appears to have carved out a double-bottom formation around its recent lows. In classical technical analysis, a double bottom is a bullish reversal pattern that forms when price tests a support area twice, fails to break down decisively, and then begins to push higher. For POL, the pattern’s neckline currently sits near the previous local high at $0.1853.
If buyers can sustain momentum and confirm this setup by pushing the price above intermediate resistance levels, the pattern points to a favorable upside scenario. A reasonable initial target for a bullish move sits around $0.1500—roughly 57% above the recent trading level. Such a rally would not necessarily end the bear phase in one move, but it would signal that buyers are regaining control and that the worst of the capitulation might be over.
This constructive outlook comes with a clear invalidation point. A decisive breakdown below the key support region around $0.0845 would negate the double-bottom structure and open the door to a deeper decline. That level now represents a critical line in the sand for bulls: as long as it holds, the probability of a medium-term rebound remains intact; if it fails, traders may need to prepare for extended downside or a more prolonged accumulation phase.
For traders and investors, the current situation around Polygon blends conflicting signals: weak price action versus strengthening fundamentals. On one hand, participation by firms like Tazapay, Revolut, Paxos, and Moonpay suggests growing institutional and retail trust in Polygon as a payment rail. Stablecoin flows and rising network fees reflect real demand for block space and transaction throughput. On the other hand, macro headwinds, regulatory uncertainty, and shifting narratives around Ethereum scaling continue to weigh on sentiment in the broader altcoin space.
Understanding this tension is crucial. In the near term, price is often more sensitive to liquidity cycles, risk appetite, and large portfolio rebalancing than to incremental improvements in fundamentals. That means POL could continue to experience volatility even if on-chain metrics stay strong. However, over a longer horizon, networks that capture consistent transactional demand—especially in payments, where volumes can be high and recurring—tend to be better positioned when market conditions improve. Polygon’s growing payment footprint could therefore act as a lever for future re-rating once risk appetite returns.
Another dimension worth watching is Polygon’s competitive landscape within the L2 and sidechain ecosystem. While Ethereum L2s like optimistic and zero‑knowledge rollups are racing to scale securely and cheaply, Polygon has pursued a multi‑chain strategy that includes sidechains, zk‑based solutions, and enterprise-focused chains. Its decision to lean into specific verticals such as payments and prediction markets may help it avoid direct, zero-sum competition with every other L2 and instead carve out a durable, specialized role. The more that payment aggregators, fintech apps, and stablecoin issuers standardize on Polygon as a default option, the stronger its network effects become.
Risk management remains essential for anyone engaging with POL at this stage. Traders who see the double-bottom as a buying opportunity will typically monitor key levels closely, consider staggered entries, and define clear exit points around the $0.0845 support zone and the $0.1500–$0.1853 resistance cluster. Long-term holders, by contrast, may focus more on ecosystem indicators: sustained growth in stablecoin transfers, the addition of new payment partners, trends in network fees and burn rate, and the pace of Polygon’s technological upgrades.
Investors should also factor in the broader macro and regulatory backdrop. Tightening or loosening monetary policy, evolving rules for stablecoins and crypto payments, and institutional adoption trends can all influence how quickly networks like Polygon can turn their fundamental traction into durable price appreciation. Payment‑centric blockchains may benefit disproportionately if regulators and financial institutions increasingly accept on-chain rails as legitimate infrastructure for cross-border settlement and retail transactions.
In sum, Polygon finds itself at an intriguing crossroads. The token’s chart presents a textbook bullish reversal pattern after a sharp selloff, while the underlying network continues to deepen its role as a core payment and stablecoin hub. Volumes from partners such as Tazapay, Revolut, Paxos, Moonpay, and others highlight the real economic activity already flowing through the chain. Whether this growing utility can translate into a sustained recovery in POL’s price will depend on the confirmation of the current technical setup, the durability of its payment growth, and the broader tides of the crypto market in the months ahead.