Polygon (POL) Plunges to Fire-Sale Levels—Is POLUSDT the Bargain of Q2?

Crypto’s favorite Ethereum scaler tanks 60% from ATH—now trading at levels not seen since the 2023 bear market. Blood in the streets or buying opportunity?

Technical breakdown: POLUSDT tests key support zone at $0.45, a make-or-break level that held through three previous crashes. On-chain data shows whales accumulating at current prices—never a bad sign when the ’smart money’ starts nibbling.

But here’s the kicker: Polygon’s actual fundamentals haven’t changed. The chain still processes 2.3M daily transactions (triple Arbitrum’s volume), and the team just deployed their ’Type 1 Prover’ for seamless Ethereum interoperability. Typical crypto market efficiency—pricing tokens like bankrupt startups while the tech keeps evolving.

Watch for: A decisive break above $0.55 could trigger a 30% relief rally. Below $0.40? Brace for ’generational buying opportunity’ tweets from influencers who bought the top.

Time To Buy POL? Focus on The AggLayer

However, it appears the tide is turning, and investors are eyeing these crypto gems. One of them, POL, though under pressure after sliding nearly 70% from December 2024, could be on the list and become one of the best cryptos to buy in 2025.

This Optimism stems from solid underlying fundamentals and the development of the Polygon ecosystem. At the heart of POL’s recovery lies the AggLayer.

If widely adopted, it may mean the governance token is currently undervalued. In turn, it is an asset that investors should accumulate for strategic reasons.

The AggLayer aims to resolve one of blockchain’s key challenges: fragmentation. Polygon Labs, the developer, recognized this problem and released the AggLayer to create a seamless, trustless environment where multiple independent blockchains can operate cohesively. Through their cooperation, they can share liquidity and user bases.

Privacy is guaranteed through zero-knowledge cryptography and a special innovation called pessimistic proofs, which assume potential malicious behavior from any connected chain.

For this reason, every transaction must be verified before settlement, boosting cross-chain security without sacrificing decentralization.

Polygon Announces The Breakout Program

To promote AggLayer adoption, the team announced the Breakout Program on April 24.

The Polygon Foundation and Polygon Labs support the initiative to incubate and launch high-value projects that connect to the AggLayer.

As an incentive to hold POL, holders will receive airdrops from projects joining the program.

These projects will airdrop between 5% and 15% of their native token supplies to POL stakers, offering immediate, tangible rewards for community members.

The Breakout Program, according to Sandeep Nailwal, sets the stage for “massive ecosystem expansion” while providing opportunities for POL holders.

Already, two projects, Privado ID (formerly Polygon ID) and Miden, a chain using zero-knowledge proofs to rival Solana and Aptos, have joined the program.

In response, POL prices recovered, surging on April 24 before consolidating. At current rates, POL could be undervalued, especially if bulls maintain upward momentum, preventing a sell-off below $0.22.

Aavegotchi Exits, Aave DAO De-Risking

Despite this bullish outlook, concerns remain. Recently, Aavegotchi, an NFT platform, voted to migrate its gaming system from Polygon to Base, an Ethereum Layer 2.

NEW: AAVEGOTCHI NFT GAMING COMMUNITY VOTES TO MIGRATE FROM POLYGON TO BASE pic.twitter.com/FaT2aCU75T

— DEGEN NEWS (@DegenerateNews) April 8, 2025

Moreover, in December 2024, AAVE DAO, a top DeFi player, chose to reduce risks on Polygon and may exit. They set their loan-to-value (LTV) ratio to 0% for all assets and froze reserves for several tokens.

Undoubtedly true.

Maybe even more interesting, I’ve spoken to teams who voted for the Aave proposal to reduce the LTV on stablecoin assets on Polygon PoS to 0%.

Their reason: "We were forced to when the Aave team threatened to no longer work with us. We’ve seen it happen… https://t.co/zlJyd7NqK5

— Degen CEO of Polygon Labs (※,※) (@0xMarcB) March 9, 2025

While they voted not to exit Polygon entirely, the move was akin to partially withdrawing.

Their de-risking followed a Polygon proposal to use $1.3 billion in stablecoin reserves for yield farming on competing protocols like Yearn and Morpho, which Aave criticized as increasing bridge risks.

17 Next Crypto to Explode in 2025: Expert Cryptocurrency Predictions & Analysis

Is Polygon (POL) Undervalued? Is POLUSDT The Best Crypto To Buy Now?

• Polygon AggLayer seeks to promote blockchain interoperability 
• Will the Polygon Breakout Program drive POL prices? 
• POLUSDT drops 70% from December highs 
• Aavegotchi votes to exit Polygon, while Aave DAO chooses to de-risk after a controversial proposal by Polygon