What increased POL activity on Polymarket?

Polymarket, a prediction market platform built on Polygon (POL), saw a big jump in activity recently. This was driven by timely events that sparked trading interest and expanded access for U.S. users, which in turn boosted on-chain usage related to Polygon’s network.

Key points:

1. Open interest on Polymarket hit a yearly high near $326 million, showing more people are trading on the platform, according to data shared this week.
2. Polygon’s transaction volume surged, mainly due to Polymarket trades and USDC stablecoin settlements, even though the POL token price didn’t rise as much, per a recent market update.
3. After the U.S. Commodity Futures Trading Commission (CFTC) gave the green light, Polymarket expanded access in the U.S., improving user retention and supporting steady growth, according to a report.

Deep Dive

1. Event-Driven Trading Cycles

Polymarket’s trading volumes rise when real-world news creates opportunities to bet on outcomes in politics, sports, and economics.

• Open contract volume recently hit a year-to-date peak near $326 million, with sports and political markets leading the way, as reported this week.
• Big news events like central bank decisions and political nominations attracted traders. For example, markets on the Bank of Japan’s rate moves and the Federal Reserve chair shortlist saw active trading, covered in recent updates and news.

What this means: When major news breaks, more traders focus on relevant markets, increasing Polymarket’s trading volume and liquidity.

2. Expanded U.S. Access and Strong User Retention

Polymarket’s growth isn’t just a one-time spike—it’s supported by broader access in the U.S. and users who keep coming back.

• A recent analysis shows Polymarket retains users better than many decentralized finance (DeFi) apps.
• After the CFTC expanded permissions, Polymarket launched a U.S. version, helping maintain steady monthly activity, according to a report.

What this means: More U.S. users can join, and they tend to stay active, which keeps trading volumes stable and helps the platform bounce back quickly when new events happen.

3. Polygon Network Activity and Stablecoin Usage

Polymarket’s growth leads to more transactions on the Polygon blockchain, mostly through low-cost USDC stablecoin payments.

• Polygon’s daily transactions have climbed back to multi-million levels, driven by Polymarket activity and stablecoin settlements, even though the POL token price hasn’t kept pace, as noted in a market update.
• Earlier data linked Polygon’s increased throughput and Polymarket’s November volume (around $4.3 billion) to strong usage growth, detailed in a summary.

What this means: More trading on Polymarket means more on-chain transactions on Polygon, boosting network activity regardless of POL token price movements.

Conclusion

Polymarket’s recent surge in activity was fueled by fresh, news-driven trading opportunities, expanded access for U.S. users, and Polygon’s efficient, low-cost transaction system. Together, these factors increased Polymarket’s trading volumes and, as a result, boosted Polygon network activity linked to POL.

What could affect the price of POL?

Polygon (POL) is currently balancing between promising network upgrades and some market challenges.

1. AggLayer Adoption – Improvements in cross-chain user experience could increase Polygon’s usefulness over time (positive outlook).
2. Migration Overhang – Remaining MATIC tokens being converted to POL might cause selling pressure in the short term (negative outlook).
3. Stablecoin Dominance – Large USDC stablecoin liquidity supports network activity but doesn’t directly increase demand for POL (mixed outlook).

Deep Dive

1. AggLayer Expansion (Positive Impact)

Overview: Polygon’s AggLayer version 3 is designed to connect liquidity across different blockchains. After a recent update called the Madhugiri hardfork, the network can handle over 1,000 transactions per second (TPS), with a goal of reaching 5,000 TPS by October 2025. Big companies like BlackRock and Stripe are starting to use Polygon, processing over $50 million in stablecoin transactions.

What this means: If AggLayer is successfully adopted, POL could become a key part of a multi-chain system, increasing demand for validators (those who help secure the network) and generating more fees. In the past, when AggLayer was tested in September 2025, POL’s price rose by about 20% (Polygon Foundation).

2. MATIC→POL Migration (Negative Impact)

Overview: Almost 98% of MATIC tokens have been converted to POL, but over $105 million worth of MATIC still remains on the Ethereum blockchain. In December 2025, the exchange Upbit paused Polygon withdrawals, showing that some issues with the migration process still exist.

What this means: These leftover MATIC tokens being converted could keep selling pressure on POL for a while. POL’s price has dropped 55% over the past 90 days, which matches the migration timeline. However, once the migration finishes (expected in early 2026), this selling pressure should ease, according to CoinDesk.

3. Stablecoin Paradox (Mixed Impact)

Overview: Polygon processes over 6 million transactions daily, similar to its activity in 2021, supported by $2.8 billion in USDC stablecoin liquidity. However, 73% of the network fees are paid in stablecoins, not POL.

What this means: While the network is busy, this doesn’t directly increase demand for POL tokens. The correlation between POL’s price and network revenue over 90 days is low (0.32). Still, big companies like Mastercard and Revolut are building on Polygon, which could eventually encourage more use of POL (Yahoo Finance).

Conclusion

Polygon’s future depends on whether the benefits from AggLayer adoption can outweigh the short-term selling from the MATIC to POL migration and the dominance of stablecoins on the network. The $0.20 level, marked by the 200-day moving average, is a key price point—breaking above it could show renewed confidence from institutional investors. The big question is whether Polygon’s growing enterprise partnerships will finally help connect network usage with increased token value.

What are people saying about POL?

Polygon’s POL token is experiencing ups and downs as it transitions and grows. Here’s the latest:

1. Migration almost done – Nearly 98% of MATIC tokens have been swapped to POL, but some selling pressure remains
2. AggLayer adoption rising – Improvements in cross-chain user experience are boosting confidence in the network’s value
3. Growing institutional use – Big payment players like Stripe and Revolut are using Polygon, though technical charts show caution

In-Depth Look

1. Polygon Migration Progress

“97.83% of MATIC➪POL upgrade complete”
– @0xPolygon (2.1M followers · 3.9K impressions · August 20, 2025)
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What this means: In the short term, some holders of the old MATIC token might sell their POL tokens during the migration, which could put downward pressure on the price. However, in the long run, POL is set to become the main token used for staking and security across Polygon’s multi-chain ecosystem, which is a positive sign.

2. Enterprise Adoption on the Rise

“Polygon processes $1.82B payment volume in Q3, partners with Stripe/BlackRock”
– @StarPlatinum_ (86.6K followers · 11K impressions · November 14, 2025)
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What this means: Polygon’s POL token is gaining real-world use as it supports large payment volumes and partners with major companies like Stripe and BlackRock. This shows strong demand for POL’s utility, even though the token’s price has dropped about 55% over the past 90 days.

3. Technical Analysis Suggests Caution

“POLUSDT 4H chart shows bearish structure; key support at $0.1038”
– @FinoraAI_KR (634 followers · 9.7K impressions · December 18, 2025)
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What this means: The short-term price outlook looks weak unless POL can break above the $0.1109 resistance level. If the price falls below $0.10, it could trigger further sell-offs.

Conclusion

The outlook for POL is mixed. On one hand, the ecosystem is growing with new technology and enterprise adoption. On the other hand, technical indicators and leftover selling pressure from the migration create uncertainty. Keep an eye on the $0.1038 support level this week—if it holds, it could confirm Polygon’s role as a global payment platform. If it breaks, we might see more selling. The big question remains: will POL’s real-world usage start to separate from speculative trading?

What is the latest news about POL?

Polygon is managing network issues and a surge in usage, but the price of POL is struggling. Here’s the latest update:

1. Network Recovery After Node Problem (Dec 18, 2025) – Polygon PoS quickly fixed an RPC node failure, keeping downtime to a minimum.
2. Upbit Pauses POL Transfers (Dec 17, 2025) – The major exchange temporarily stopped deposits and withdrawals during urgent network upgrades.
3. Transaction Volume Hits 2021 Levels (Dec 17, 2025) – Daily transactions jumped past 6 million, but POL’s price remains near its lows.

Deep Dive

1. Network Recovery After Node Problem (Dec 18, 2025)

What happened:
A validator error caused temporary splits (forks) in Polygon’s PoS network, affecting some RPC nodes. Despite this, block production continued without interruption, and fixes were applied within hours. POL’s price dropped about 4% during the incident but stabilized around $0.11 after recovery.

Why it matters:
The quick fix shows Polygon’s improved ability to handle network problems compared to past outages. Still, it highlights ongoing technical risks for Layer 2 blockchain solutions. (CoinMarketCap)

2. Upbit Pauses POL Transfers (Dec 17, 2025)

What happened:
Upbit, a major cryptocurrency exchange, paused deposits and withdrawals of POL and GMT tokens after a block production halt led to emergency upgrades. Trading on the exchange’s internal order books continued during this freeze.

Why it matters:
While such pauses can temporarily limit liquidity and shake user confidence, they are important safety measures to protect users’ assets during network instability. (CoinMarketCap)

3. Transaction Volume Hits 2021 Levels (Dec 17, 2025)

What happened:
Polygon’s daily transactions surged to 8.1 million on December 10, driven mainly by stablecoin payments and activity on the prediction platform Polymarket. Despite this growth in usage, POL’s price stayed near $0.11, down 55% over the last 90 days.

Why it matters:
High network usage, especially for real-world payments, hasn’t boosted demand for POL tokens. This is likely because transaction fees favor stablecoins like USDC over POL, causing a disconnect between network activity and token value. (Yahoo Finance)

Conclusion

Polygon shows strong network resilience and growing transaction numbers, but POL’s price remains weak. This reflects both technical progress and challenges in how the token captures value. The question remains: will increasing institutional adoption from companies like Stripe and BlackRock help close this gap, or will POL’s price stay disconnected from the network’s success?

What is expected in the development of POL?

Polygon’s roadmap is focused on making the network faster, more useful, and growing its community. Here are the key milestones:

1. AggLayer Integration (2025) – Connect different blockchains to share liquidity and data smoothly.
2. Gigagas Roadmap (2026) – Aim for 100,000 transactions per second (TPS) to lead in global payments.
3. Staking Hub Launch (2025) – Let POL holders help secure multiple blockchains and earn rewards.
4. Polygon zkEVM Sunset (2026) – Stop supporting zkEVM to focus on Proof of Stake (PoS) and AggLayer.

Deep Dive

1. AggLayer Integration (2025)

Overview: AggLayer is Polygon’s technology to connect different blockchains, allowing them to work together like an “Internet of Blockchains.” In 2025, the community will vote on linking Polygon PoS to AggLayer, enabling POL tokens to be used across multiple blockchains (Polygon Blog).
What this means: This is positive for POL because it could increase demand for cross-chain transactions and staking. However, delays or technical issues could slow progress.

2. Gigagas Roadmap (2026)

Overview: Announced in June 2025, this plan aims to reach 100,000 TPS by 2026, focusing on real-world asset settlements and small payments. The Bhilai upgrade (already live on testnet) increased speed to 1,000 TPS with very low fees (under $0.001) (CoinMarketCap News).
What this means: This is somewhat positive. Faster transactions could attract big companies like Stripe and BlackRock, but success depends on keeping fees low and the network stable.

3. Staking Hub Launch (2025)

Overview: Soon, POL holders will be able to stake their tokens to help secure multiple blockchains, earn rewards from services like zero-knowledge proof generation, and take part in governance decisions. This supports Polygon’s goal of making POL a highly useful token (Polygon Blog).
What this means: This is positive because it could increase demand for staking POL. However, changes in token economics might cause some price fluctuations.

4. Polygon zkEVM Sunset (2026)

Overview: Polygon plans to stop supporting zkEVM in 2026 to focus on PoS and AggLayer development. This decision comes after a drop in activity and a strategic shift toward payments and real-world assets (Coinspeaker).
What this means: This is neutral. It could make Polygon more efficient but might disappoint developers who rely on zkEVM.

Conclusion

Polygon is focusing on making its network faster (100,000 TPS), connecting blockchains (AggLayer), and supporting real-world uses like payments and asset management. These upgrades and partnerships with companies like Stripe and Mastercard are promising, but challenges in execution and market reactions remain important factors.

The big question: Will POL’s growing usefulness help it compete with Ethereum Layer 2 solutions like Arbitrum?

What updates are there in the POL code base?

In 2025, Polygon’s technology received major upgrades aimed at improving scalability, security, and aligning the ecosystem with its native token, POL.

1. Madhugiri Hardfork (December 9, 2025) – Increased network capacity by 33% and made future upgrades easier.
2. Heimdall v2 Mainnet Upgrade (July 10, 2025) – Cut transaction confirmation times to about 5 seconds.
3. MATIC to POL Token Migration Completed (September 4, 2024) – POL became the main token for transaction fees and staking.

Deep Dive

1. Madhugiri Hardfork (December 9, 2025)

What happened: This upgrade boosted Polygon’s Proof-of-Stake (PoS) network throughput by 33% and introduced flexible block timing to speed up processing.

Key improvements:

• PIP-75: Allows blocks to be produced as quickly as every second, speeding up transactions.
• PIP-74: Improves how nodes sync data, making the network more reliable.
• Security upgrades compatible with Ethereum help reduce transaction costs.

Why it matters: This upgrade makes Polygon’s network more capable of handling high-demand uses like payments and real-world asset tokenization, while still working smoothly with existing applications. (Source)

2. Heimdall v2 Mainnet Upgrade (July 10, 2025)

What happened: Polygon replaced its consensus engine with a faster one called CometBFT, improving how quickly transactions are finalized.

Technical benefits:

• Transaction finality dropped from about 90 seconds to 4–6 seconds, meaning transactions are confirmed much faster.
• Removed outdated code, making the system easier to maintain.
• Prepared the network to handle over 1,000 transactions per second before integrating the AggLayer scaling solution.

Why it matters: This upgrade helps Polygon scale for enterprise-level use, addressing previous speed bottlenecks. While the upgrade caused some short-term price swings during the transition, it’s generally positive for POL’s future. (Source)

3. MATIC to POL Token Migration Completed (September 4, 2024)

What happened: POL officially replaced MATIC as the native token for Polygon’s PoS network, becoming the token used for paying fees and staking.

Key points:

• POL is now the primary token for network operations.
• Users holding MATIC on Ethereum or zkEVM networks had to manually migrate their tokens via the Polygon Portal.
• The migration was designed to avoid disruptions, maintaining compatibility with existing services.

Why it matters: This unification under POL strengthens Polygon’s token economy and supports multi-chain security. By August 2025, over 97% of tokens had migrated successfully. (Source)

Conclusion

Polygon’s 2025 upgrades show a clear focus on making the network faster and more scalable (Madhugiri Hardfork, Heimdall v2) while simplifying its token system (POL migration). As the AggLayer scaling solution rolls out, the question remains: can POL’s expanded capabilities help recover from its 55% price drop this year?

Why did the price of POL go up?

Polygon (POL) increased by 1.55% in the last 24 hours, breaking away from its downward trend over the past week (-8.4%) and month (-22.24%). This gain matches a slight overall crypto market recovery (+0.08%) but also shows Polygon’s specific technical strength and network resilience.

1. Technical Rebound (Positive Sign): An oversold RSI and a liquidity sweep near $0.117 attracted buyers.
2. Network Recovery (Mixed Outcome): Polygon’s Proof-of-Stake (PoS) network fixed a node issue, restoring confidence but reminding users of ongoing volatility risks.
3. Accumulation Signals (Neutral): Increased trading volume and stable price action near a downward trendline suggest some investors may be preparing for a reversal.

Deep Dive

1. Technical Rebound (Positive Sign)

Summary: On December 18, Polygon’s price dipped near $0.1168–0.117, triggering buying interest that pushed the price up to $0.121 with strong momentum (CryptoFrontNews). The Relative Strength Index (RSI) was at 33.57 (14-day), indicating oversold conditions, and the MACD histogram was close to a bullish crossover.

What this means: Short-term traders likely saw the $0.114–0.117 range as a strong support zone and took advantage of the oversold market to buy. The price moving above $0.121 suggests a shift toward higher lows, but Polygon still faces resistance at $0.145 (the 23.6% Fibonacci retracement level).

What to watch: If Polygon closes above the 7-day Simple Moving Average (SMA) at $0.11208, it could signal continued upward momentum. If it falls below $0.117, the price might retest the low of $0.10196 seen earlier in 2025.

2. Network Recovery (Mixed Outcome)

Summary: On December 18, Polygon’s PoS network experienced a node outage caused by a validator proposal glitch. Although block production continued, the incident caused a brief 4% price drop during the day (CoinMarketCap).

What this means: The quick fix shows Polygon’s improved ability to handle network issues compared to previous outages, like the one in March 2023. Still, the 24-hour volatility and a 22.24% monthly drop highlight ongoing concerns about network stability during stressful events.

What to watch: Keep an eye on validator participation rates and updates from developers about strengthening the network’s protocols.

3. Accumulation Signals (Neutral)

Summary: Despite a generally bearish market mood, Polygon’s 24-hour trading volume stayed steady at $49.5 million, and derivatives open interest remained around $35 million. Analysts observed that price movements were compressed near a descending trendline, a pattern that often comes before a breakout (ZAYK Charts).

What this means: Some investors may be accumulating Polygon at these low points, betting on its long-term potential, including adoption of AggLayer technology and partnerships with institutions. However, selling pressure from the migration from MATIC to POL (97.8% complete) and weak overall altcoin market sentiment (CMC Altcoin Index at 16/100) limit the upside.

Conclusion

Polygon’s 1.55% gain over 24 hours reflects a tactical bounce from oversold levels and relief after network issues were resolved. However, broader challenges like migration-related selling and Bitcoin’s dominance at 58.97% temper optimism. Key point to watch: Will Polygon close above $0.121 to confirm a trend reversal, or will weakening momentum push it back down?