Polygon (POL) price has dropped to its lowest levels of 2025, currently around $0.12, marking a decline of over 60% from its yearly high. This dip occurs despite the network's recent activation of the Madhugiri hard fork (December 9), which increased throughput by approximately 33%, reduced consensus time to just 1 second, and facilitated easier future speed upgrades without further hard forks. Concurrently, on-chain activity is booming, with transactions sharply rising in recent weeks and record micropayments signaling soaring network usage even as the price falls.

Macro and Bitcoin (BTC) Analysis
The Federal Reserve recently implemented its third consecutive 25 basis point rate cut, bringing the target range to 3.5%–3.75%.
Market indicators show Bitcoin traders are realizing losses around -18%. Historically, a major cycle bottom has correlated with realized losses closer to -37%. Short-term holders appear to be selling during dips, while long-term holders are accumulating assets. This activity is keeping BTC near strong support levels, even with easier monetary conditions, as it trades in the $90,000–$92,000 range.
Ethereum (ETH) Technical Outlook
Ethereum is forming a classic bearish rising wedge pattern as it approaches the $3,200 area, currently trading around $3,080–$3,100. ETH has lost the Value Area High, and volume is fading significantly, indicating clear signs of weakness. A breakdown below the wedge and the Point of Control (POC) could trigger a rapid decline toward the $2,500 support level.