Polygon’s POL token has tumbled to its lowest level since rebranding, shedding over 73% of its value from its December peak. While the network’s NFT market, led by Courtyard, has been thriving, broader challenges continue to weigh down the ecosystem.
NFT Sales Surge as Polygon Struggles
Polygon’s decline comes amid fierce competition from layer-2 rivals like Base and Arbitrum. The network, once a top-ten player in total value locked (TVL), has gradually slipped in rankings. However, the NFT sector has provided a glimmer of hope.
One of the standout performers has been Courtyard, a digital collectibles platform that has seen its sales soar. Data from CryptoSlam reveals a 47% jump in Courtyard transactions over the past 30 days, reaching $55 million.
That’s a massive gap compared to DMarket, the second-best-selling collection in the same period. Courtyard’s transaction count has also edged up by 5%, hitting 517,509.
Yet, the enthusiasm may be cooling. OpenSea data shows Courtyard’s floor price has dropped from 45 POL to 38 POL in a week.
Revenue and Fees Take a Hit
Despite Courtyard’s success, Polygon’s network revenue is in freefall. According to TokenTerminal, revenue in March plummeted by 65%, landing at just $96,500. Fees collected also fell sharply, down 47% to $356,000.
This decline underscores a broader issue: NFT sales are notoriously volatile. They often see short-lived surges before fizzling out as traders shift focus.
A few key takeaways:
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Polygon’s revenue is shrinking fast, with a 65% drop in March.
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The network’s fees collected also tumbled nearly 50%.
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NFTs, while booming now, tend to have short life cycles.
Polygon’s Price Chart Signals a Possible Rebound
The technical outlook for POL remains mixed. The token has been in a steep downtrend since December, plummeting from $0.77 to $0.20. It has consistently traded below the 50-day moving average, indicating sustained bearish pressure.
But there are signs of life. POL has formed a falling wedge pattern, often considered a precursor to a price reversal. Additionally, the MACD and BBTrend indicators both hint at a bullish divergence, suggesting some buying interest is returning.
One crucial support level to watch: $0.1980. This is where POL has formed a double-bottom pattern, another bullish reversal signal. If the token breaks out, it could test resistance at $0.2855—the swing low from November 4 last year.
What’s Next for Polygon?
Polygon’s fate hinges on multiple factors. Its NFT market remains a bright spot, but revenue losses and increased competition pose challenges. If POL manages to break out of its current downtrend, investors could see a short-term recovery. However, the sustainability of any rebound remains uncertain, given the volatile nature of NFTs and the broader crypto market.
