Polygon price, which has been in a downward trend in recent months, continues to lose its market share in the layer-2 sector. On Friday, MATIC fell to the key support point at $0.4343 and retook some of those gains. However, it remains 60% below this year's high and 82% below its all-time high. 😞

Competition in the Layer-2 sector

Polygon, one of the pioneers in the Layer-2 industry, has come under pressure in recent years as the number of competitors has increased. Its total value in the DeFi sector fell from almost $10 billion to a record high of $872 million.

Polygon was overtaken by the likes of Base and Blast, and Optimism also took some market share from Polygon. This competition partly explains the MATIC price drop of 82% from its all-time high.

However, Polygon has some encouraging on-chain metrics. For example, it has data showing that it is the second largest chain after Tron, with 2.09 million addresses.

Additionally, the number of transactions on the network has remained stable. These daily transactions have remained above 3.8 million since March 11 of this year.

Polygon price lost important support

Despite these forces, Polygon price has fallen sharply over the past few weeks. It has also fallen below a key support level, which has the potential to invalidate an emerging double bottom pattern.

There is a possibility of reaching the next support at $0.3206, which is the June 2022 low and is 37% below the current level.