Polymarket’s trading volume spiked in October, surpassing $2 billion, coinciding with a modest recovery in the price of Polygon’s native token (POL, formerly MATIC).
Data from DeFi Llama revealed a significant uptick in Polymarket’s trading activity, with its volume jumping from $533 million last month to $2.08 billion in October. The data also showed that Polymarket’s trading volume within the last 24 hours is $127.22 million, suggesting sustained interest in the platform’s prediction-based trading model.
Polymarket’s Trading Volume. | Source: DefiLlama
This increase underscores the platform’s growing presence as one of the leading prediction markets in the crypto industry. Polymarket users’ bets on real-world events have driven considerable engagement on Polygon’s layer-2 network.
Prominent among the betting activities in recent months is the US Presidential Election Winner between Donald Trump and the current vice president, Kamala Harris.
Polymarket and POL’s Price
Polymarket operates on the Polygon blockchain, requiring users to deposit USD Coin (USDC) within the Polygon network to place their bets. In September, Polygon changed the name of its native token from MATIC to POL, allowing holders to swap MATIC to POL 1:1.
Since then, the network’s growth metrics have reflected a growing user base and increased transaction volume. According to data from PolygonScan, POL’s network transaction volume rose to 3.1 million on Monday, compared to a September low of 2.3 million.
Moreover, unique addresses reached 470 million, including a daily gain of 190,000. Additionally, Polygon’s Proof-of-Stake (PoS) utilization rate rose by 49%, indicating consistent network activity.
Polygon Faces Stiff Competition
Despite these improvements, Polygon faces competition within the blockchain industry, particularly in decentralized finance (DeFi) and decentralized exchange (DEX) markets. As of now, Polygon has $1.154 billion in total value locked (TVL) across DeFi projects, ranking as the third-largest layer-2 network, trailing Base and Arbitrum.
However, POL’s share in the DEX market has dropped compared to its competitors. Its October DEX volume of $5.1 billion is significantly below Base’s $25 billion and Arbitrum’s $15 billion.
POL’s Price Action
Meanwhile, technical analysis indicates the potential for a surge in POL’s price. POL remains below its 23.6% Fibonacci retracement level and the 50- and 25-day Exponential Moving Averages.
A bullish crossover pattern in the MACD indicator and a rising Relative Strength Index (RSI) toward the neutral level of 50 suggests the possibility of a continued price uptrend.
POL’s 24-hour Price Chart. | Source: Coinmarketcap