Polygon’s role as a stablecoin could revive the struggling token, but competition and weak volumes keep the outlook uncertain.
Summary
- Polygon is positioning itself as the core settlement layer for banking, fintech and commercial stablecoins.
- Executives see more than 100,000 stablecoins by 2030, with banks using on-chain deposit tokens.
- MATIC provides important support thanks to oversold momentum, but volumes are thin and the L2 rival is strong.
Polygon’s native token is under scrutiny as market analysts examine whether expected growth in stablecoin adoption could reverse the cryptocurrency’s recent underperformance, industry observers said.
The Polygon blockchain network has positioned itself within the growing stablecoin infrastructure as adoption increases across banking institutions, fintech platforms and trading networks. Market participants are evaluating whether increased stablecoin activity could boost demand and utility of Polygon’s token.
Polygon Real World Assets
Aishwary Gupta, Polygon’s Global Head of Payments and Real-World Assets, predicts that more than 100,000 stablecoins will be issued by 2030, according to statements from industry sources. The forecast includes issuance not only by cryptocurrency-native companies, but also by banks, corporations, sovereign governments and global trading platforms.
According to Gupta’s analysis, the trend reflects a transition from speculative cryptocurrency applications to infrastructure-level digital currency systems. Banks are looking to retain capital that could otherwise flow into higher-yield assets up the chain, while companies are pursuing closed currencies designed to preserve consumer value within their ecosystems.
Gupta stated that stablecoins strengthen rather than weaken monetary control, citing that USD-denominated stablecoins have increased global demand for dollars. The executive indicated that banks can issue deposit tokens that allow users to transact on blockchain networks without taking money from institutional balance sheets.
Polygon’s infrastructure features low transaction fees and high throughput, with integrations across payment networks including Visa, Stripe, Shopify and Revolut, according to company information. The network processes millions of transactions every day and maintains a substantial supply of stablecoins.
Recent data shows that Polygon has been processing significant transaction volume in recent quarters and accounting for a significant portion of global peer-to-peer transfers in USDC. According to blockchain analytics, the network has added significant overall value this year.
The company’s AggLayer technology is designed to unify liquidity across blockchain networks, potentially positioning Polygon as a settlement infrastructure for interoperable stablecoins across applications, banking systems and markets.
The network’s economic model involves deploying the native token to secure operations and generate fee revenue. Increased stablecoin transaction speed would have a direct impact on fee generation and network activity, factors relevant to token valuation.
Market sentiment remains divided on Polygon’s token prospects. The assets have traded near recent lows, with some analysts citing competition from other layer 2 solutions and migration delays as headwinds.
Technical analysis of Polygon’s token shows price action defending support levels on daily time frames, with the Relative Strength Index being in oversold territory but rising. The moving average convergence-divergence indicator has turned slightly positive, indicating that selling pressure has subsided.
On shorter terms, the token forms a pattern below resistance levels that some technical analysts identify as an ascending triangle. Such formations can precede an upward price movement if they are accompanied by oversold momentum indicators and favorable market conditions.
Trading volume remains subdued. Market observers note that an acceleration in stablecoin adoption could impact Polygon’s token performance, although outcomes remain uncertain given the competitive dynamics in the layer-2 blockchain sector.
