Polygon Surpasses Ethereum in NFT Sales, Price Down 76%

Polygon's price has been in a free fall this year, approaching its year-to-date low. On Friday, July 4, the price of Polygon (POL) dropped to a low of $0.1800, marking a decline of over 76% from its highest point this year. This significant drop has resulted in the erasure of more than $4 billion in value, with its market capitalization falling from nearly $6 billion to $1.88 billion.

Despite this decline, Polygon could be on the verge of a breakout. The network has recently surpassed Ethereum (ETH) in terms of weekly non-fungible token (NFT) sales. According to CryptoSlam data, NFT sales on the Polygon network jumped by 52% in the last seven days to $24 million, while Ethereum NFT sales fell by 5.7% to $23 million. This shift in the NFT sales index indicates that Polygon is gaining traction in the NFT market, which could potentially drive its price higher.

The surge in Polygon’s NFT volume was primarily driven by Courtyard, which recorded over $18 million in sales. Other top NFT collections on Polygon included DNS, with $4.9 million in sales, and OKX NFT Creation. This increased activity in the NFT sector suggests that Polygon is becoming a more attractive platform for digital asset transactions.

In addition to its gains in the NFT sector, Polygon is also making strides in the stablecoin sector. Primarily due to Polymarket, the stablecoin supply on Polygon rose by 8.5% in the last 30 days to $2.4 billion. The number of transactions surged by 39% to 92.6 million, indicating a growing interest in stablecoins on the Polygon network.

However, Polygon faces stiff competition from other growing layer-2 networks. It currently holds a total value locked (TVL) of over $1.2 billion. In comparison, the newly launched Unichain has already reached $1.16 billion in TVL, and Base holds over $4.9 billion in TVL. Its monthly decentralized exchange volume has soared to over $28 billion, highlighting the intense competition in the layer-2 space.

Technical analysis of the Polygon price shows that it is gradually forming a double-bottom pattern at $0.1500, with a neckline at $0.2755, its highest level in May this year. This neckline is slightly below the 23.6% Fibonacci retracement level. Additionally, POL has formed a falling wedge pattern, a popular bullish reversal setup defined by two descending and converging trendlines. These lines are nearing convergence, which may lead to a bullish breakout.

If a breakout occurs, the initial target is the neckline at $0.2755, representing a potential 53% gain from the current level. However, a drop below the double-bottom support at $0.1500 would invalidate the bullish outlook. This technical analysis suggests that Polygon's price could be poised for a significant move, either upwards or downwards, depending on market conditions.

Polygon has surpassed Ethereum in a significant metric, indicating a potential breakout for the POL price. This development comes as the cryptocurrency market continues to evolve, with various tokens vying for dominance. The shift in this key metric suggests that Polygon is gaining traction and could potentially challenge Ethereum's position in the market. The POL price is now poised for a breakout, which could further solidify Polygon's standing in the cryptocurrency ecosystem. This news highlights the dynamic nature of the cryptocurrency market, where tokens can quickly rise in prominence based on various factors, including technological advancements and market sentiment. As Polygon continues to gain ground, it will be interesting to see how this affects the broader cryptocurrency landscape and whether other tokens will follow suit in challenging established leaders.