Polygon, Ethereum’s leading scaling solution, is seeing an explosion in trading volume and adoption. However, the platform’s POL token is not reflecting strong momentum as prices remain under pressure.

Polygon Leads the Way in Decentralized Trading
Since the beginning of 2024, Polygon has processed over $214 billion in decentralized (DEX) trade volume. Along with that, the platform has also recorded $102 billion in assets traded on centralized exchanges such as Binance, Coinbase, and many others.

Polygon price trending downward on the daily chart | Source: POLUSDT on Binance, TradingView

According to data from DeFiLlama, Polygon is maintaining deep liquidity and maintaining a strong connection to Ethereum. This helps the platform’s ecosystem maintain its appeal to developers when deploying decentralized applications (dApps) in a low-fee, highly scalable environment.

In addition, Polygon is developing **Aggregation Layer (AggLayer)** – a solution that connects all Layer 2 technologies based on its technology. AggLayer will play a central role in the expansion of Ethereum, facilitating instant liquidity between connected Layer 2s and increasing the utility of the POL token.

Technological Innovation and Practical Applications
Polygon’s expansion does not stop in the DeFi sector but also extends to traditional finance. Recently, the Italian government issued a digital bond worth 25 million EUR on the Polygon PoS network. Meanwhile, major financial institutions such as Franklin Templeton, Ondo, and Spiko are using Polygon to tokenize assets, including US Treasury bonds.

In addition, the upgrade from MATIC to POL on September 4, 2024 is a major step forward. POL not only serves as a reward for validators, but is also used to secure other platforms through AggLayer, expanding the capabilities of the ecosystem.

Why Has POL Not Yet Shown Its Potential?

Despite Polygon's high adoption and continuous technological improvements, the price of POL is still struggling. After the migration from MATIC to POL, the token fell and found support around $0.35. To break out of the downtrend, POL needs to break above $0.60 and close above the descending channel.

This decline could be due to a number of reasons:

- General market sentiment**: The crypto market is in a correction phase, affecting most altcoins, including POL.

- Selling pressure from investors**: The switch from MATIC to POL may have created a wave of profit-taking from investors who previously held MATIC.

- More time is needed for POL to prove its value**: With new features, POL needs time to demonstrate its important role in the Polygon ecosystem and attract new capital.

Medium and Long-Term Outlook
Although POL's price has not yet reflected the strength of the ecosystem, Polygon is still maintaining a strong position in the market. If AggLayer is successfully deployed and POL's utility is fully exploited, this token could regain growth momentum in the medium and long term.

Key developments such as expanding partnerships with traditional financial institutions, deeper integration with Ethereum and Layer 2, along with the thriving DeFi ecosystem, could be catalysts for POL to recover and grow sustainably in the coming time.