# Why is Polygon’s Value Plunging?
Polygon (POL) has witnessed a value decline, slipping under crucial support thresholds due to a sustained deceleration within its environment.
On Tuesday, the value of Polygon (POL) dropped to $0.3910, a 47% reduction from its peak in December 2024.
Information from Nansen reveals that the quantity of dynamic addresses on the Polygon network diminished by 12% over the prior month, achieving 5.96 million. This is considerably inferior to the second-layer network Base, which documented 21.7 million dynamic addresses throughout the equivalent timeframe.
Notwithstanding a 7% surge in Polygon’s transaction volume to 91.5 million, its fee income plummeted by 38% to $835,000. This unsatisfactory showing contrasts greatly with Base, which handled beyond 218 million transactions and produced $15.5 million in fees.
Additional information suggests the justifications for Polygon’s underachievement this year. The total value secured (TVL) in its DeFi environment has lessened to $842 million, considerably smaller than Base’s $3.41 billion and Arbitrum’s $3 billion.
Polygon’s decentralized exchange (DEX) environment is furthermore trailing. Weekly trading volume lessened by 20% to $1.2 billion, whereas the comparatively new network Base handled $10.7 billion throughout the equivalent timeframe.
An analogous pattern is noticed in the NFT market, where Polygon formerly possessed a substantial position. According to CryptoSlam, sales of Polygon NFTs lessened by 71% to $24.8 million in the prior month, whereas Base surged by 388% to $22.7 million in sales. Toncoin (TON) Value Forecast for March 26th
Polygon’s underachievement furthermore clarifies why it was eliminated from Lido DAO’s liquid staking in December.
## Polygon’s Value Configuration Implies Additional Disadvantage
The four-hour chart demonstrates that the POL token attained a peak of $0.7671 following its conversion from MATIC last year. Lately, it has shaped a descending triangle configuration, with its lower side at $0.4138. It has repeatedly neglected to break beneath this threshold since December last year. The descending triangle is a typical negative indication.
The cost of Polygon has dipped beneath its 50-day moving average, which is contributing to the negative outlook. The easiest route seems to be downward, and the subsequent crucial support threshold to observe is $0.3425, which was the token’s trough on November 15th.
