Polygon's Upgrade Drives Stablecoin Surge and Buyer Takeover

Polygon's native token, POL, has experienced a notable surge, rising approximately 12% to $0.2736 as of August 31, 2025, driven by increased network activity and growing buyer interest. The uptick in performance coincided with a 25% rise in Active Addresses from 447,000 to 665,000, as reported by Artemis, and a 7.9% increase in Daily Transactions to 4 million, signaling a revival in on-chain usage [1]. This resurgence has been attributed to Polygon's recent upgrade to the USDT0 standard, which has enhanced its role in stablecoin transactions, particularly with a focus on USDT0 activity [1].

Network data from Sealunch further underscored Polygon’s growing prominence, showing that it recorded 780,000 transacting addresses, outpacing Arbitrum's 492,000 [1]. Additionally, analysis by crypto analyst Petertherock indicated that Polygon is increasingly becoming a hub for stablecoin activity, particularly for XSGD transfers, with $66 million, $88 million, $74 million, and $94 million processed in each of the past four months [1]. These trends suggest that Polygon's infrastructure is attracting more users and use cases, especially in the realm of cross-border payments and stablecoin utilization.

Buyer accumulation also appeared to play a key role in the recent rally. According to Coinalyze, POL saw a significant imbalance in trading volumes, with Buy Volume reaching 86.7 million compared to Sell Volume of 70.6 million, resulting in a Buy–Sell Delta of 16.1 million over two consecutive days [1]. This accumulation pattern suggests that buyers are increasingly willing to hold the token despite short-term price volatility. However, momentum for profit-taking has also been on the rise, as evidenced by a Santiment Ratio of Daily On-chain Transaction Volume in Profit to Loss climbing to 3.24 [1]. This metric implies that for every one losing transaction, there are three profitable ones, signaling heightened selling pressure that could lead to corrections.

Exchange activity further reinforced the growing selling interest. CoinGlass reported that Polygon Network’s token recorded a positive Spot Netflows for two consecutive days, with the latest Netflow at $929,000, a decline from $2.02 million the previous day [1]. This suggests that while inflows are still occurring, the rate is slowing, possibly indicating a market in consolidation. Meanwhile, momentum indicators pointed to bullish conditions, with the Relative Strength Index (RSI) climbing to 61 and the Positive DI of the Directional Movement Index at 24 versus the Negative DI at 20, indicating buyer dominance [1]. Traders are now watching whether Polygon can break through the $0.28 resistance level, with potential for further gains toward $0.30, while a failure to hold above $0.23 could lead to a pullback toward $0.247.

Analysts are closely monitoring the broader implications of Polygon’s progress. The MATIC-to-POL migration is nearing completion, with more than 97% of the transition already finalized, which is expected to unify the ecosystem under a single token [2]. This development, combined with the recent Heimdall v2 upgrade that reduced finality time to just five seconds, has improved the network’s speed and scalability [2]. The growing Total Value Locked (TVL) in Polygon’s DeFi protocols, which has risen 43% since the start of 2025 to $1.23 billion, further highlights the platform’s increasing adoption and utility [2]. These improvements have positioned Polygon as a strong contender in the Layer 2 and blockchain infrastructure space, with potential for continued growth as the ecosystem matures.

As the market continues to assess Polygon's long-term viability, the interplay between accumulation and profit-taking will be critical in determining the token’s trajectory. While the current technical and fundamental indicators are largely bullish, the potential for short-term corrections remains a risk, particularly as traders react to profit-taking and market sentiment shifts. The coming weeks will be crucial in determining whether Polygon can maintain its upward momentum and solidify its position in the competitive blockchain ecosystem.

Source:

[1] Assessing Polygon's 12% comeback: 2 key levels for POL's next move (https://ambcrypto.com/assessing-polygons-12-comeback-2-key-levels-for-pols-next-move/)

[2] Polygon (POL) Price Approaches Final Migration Stage as Chart Points to 2x Rally (https://captainaltcoin.com/polygon-pol-price-approaches-final-migration-stage-as-chart-points-to-2x-rally/)