Key Insights:
- DeFi on Polygon crypto is growing fast, with TVL up 37% and stablecoin usage hitting 3-year highs.
- POL price is gaining momentum, but weekly netflows remain negative, showing caution among traders.
- Key levels show resistance near $0.25–$0.31. A breakout could take the POL price to $0.50 and beyond.
Polygon’s native token, POL, has shed 6.5% over the past 7 days, and its 3-month chart shows a modest 1.3% rise. Still, with a daily gain of over 7%, there’s renewed interest from traders.
But it’s not just the POL price that’s making noise. Behind the scenes, DeFi activity on Polygon is starting to grow again. And that’s where the real POL price story begins.
DeFi Growth on Polygon Crypto Is Picking Up
In the last three months, TVL (Total Value Locked) on Polygon has grown by 37%, reaching over $1.1 billion. That makes Polygon the second-largest Layer 1 in terms of DeFi growth after Ethereum.
More builders are choosing the network, and this is showing up in both stablecoin usage and development activity.
Stablecoin supply on Polygon crypto just hit $2.76 billion in July 2025, the highest in three years.
But this isn’t just about numbers going up. It reflects real user activity. People are using Polygon to send and receive stablecoins, take loans, and use lending platforms.
There has even been a rise in peer-to-peer (P2P) payments, showing that Polygon is being used for more than just trading.
Traders Are Still Cautious Despite Uptick in POL Price
Even though the POL price is moving up, not everyone is convinced yet.
Weekly spot netflows remain negative, meaning more POL tokens are leaving exchanges than coming in.
This often signals that investors are holding or withdrawing to self-custody instead of selling, but it also means there isn’t heavy buying pressure yet.
Even though the netflows are net-negative, the numbers aren’t high. This pattern shows indecision. Meanwhile, the long/short ratio has moved slightly in favor of longs.
As of August 5, 2025, about 51.4% of traders are betting on the price to go up, while 48.6% are shorting it. The ratio is hovering near 1.05, showing the market is still undecided, but slightly bullish.
Historically, a long bias often works in favor of the POL price by supplying the needed momentum.
Polygon Crypto RSI Rebounds, Momentum Builds Slowly
The RSI (Relative Strength Index) for POL has also started to move up again. It recently bounced from near-oversold levels (around 31) and is now touching the signal line at 49. This suggests buyers are returning.
For a real breakout to happen, RSI needs to move past the 59 level. That would confirm a shift in momentum and possibly bring more buyers in.
Right now, RSI is trending up, but not yet at a strong level. Traders should keep an eye on whether it crosses above the 59–60 zone.
The slightly bullish long-short ratio and the increasing RSI can be a positive sign if the POL price is eyeing a breakout.
POL Price Prediction: Breakout Above 31 Cents First?
The POL price is currently trading at around $0.213, taking support at $0.19.
Based on the Fibonacci chart, the key levels to watch are $0.23, 0.25, and 0.29. These are resistance zones; if POL breaks past these, the next targets would be $0.31.
However, if 0.31 breaks, POL might just have the legs to head towards the $0.50 or the 50-cent mark. The bullish outlook might get invalidated if POL manages to dip under $0.19. That would change the entire price structure into a bearish format.
