Polygon and Ethereum Locked in 29% TVL Battle – POL’s $0.22 Price Reveals Critical Market Shift

Two blockchain titans now hold identical dominance in decentralized finance's total value locked metric—and the implications are rattling markets.

The 29% Standoff

Polygon's scaling solution matches Ethereum's TVL percentage point-for-point, creating an unprecedented parity between layer-1 and layer-2 protocols. This equilibrium arrives as POL tokens trade at just $0.22—a price that either signals massive undervaluation or fundamental concerns.

Network Effects Collide

Ethereum maintains its first-mover advantage while Polygon's infrastructure gains traction through lower gas fees and faster transactions. The identical TVL percentages suggest capital is voting with its wallets—distributing risk across both ecosystems rather than concentrating in either.

The POL Price Puzzle

At $0.22, market sentiment appears conflicted about Polygon's long-term viability. Either investors are missing the significance of matching Ethereum's TVL, or they're pricing in structural weaknesses the metrics don't capture. Traditional finance analysts would call this 'efficient markets' while quietly shorting both assets.

This TVL deadlock represents either a temporary anomaly or the new normal for blockchain hierarchy—and POL's bargain-basement price suggests traders haven't decided which narrative to believe.

Key Takeaways

Why does Polygon matter now?

Polygon matched ethereum with 29% USTBL TVL, cementing its institutional role.

What’s next for POL’s price?

Traders watched $0.22 support and $0.2899 resistance. A rebound could extend toward $0.3426 and $0.4209 if accumulation holds.

Polygon’s native token, POL (ex-MATIC) [POL], drew investor attention as it matched Ethereum [ETH] in U.S. Treasury Bill TVL, with both holding 29%.

This milestone highlighted the rising demand for institutional-grade exposure through Polygon’s network, which has steadily attracted inflows due to its lower fees compared to Ethereum. 

As capital rotates toward efficient blockchains, the surge in TVL has become a key driver for POL’s relevance. 

Still, price action showed weakness, leaving short-term sentiment hinged on key support and resistance levels.

Can POL hold $0.22 support?

Price action showed that POL slipped toward $0.237 at press time and has been hovering close to its ascending trendline. The charts suggested a possible retest of $0.22 support before momentum builds again. 

If buyers defend this zone, a breakout above $0.2899 resistance could unfold, unlocking targets at $0.3426 and possibly $0.4209. Failure to hold $0.22, however, risked a deeper downside.

That left POL’s immediate outlook balanced between resilience and vulnerability.

Source: TradingView

Persistent outflows show bearish undertones

Exchange data indicated that POL saw consistent negative flows at press time. The latest being outflows of around $608.78K.

This trend reflects declining supply on exchanges, often a sign of accumulation by long-term holders. 

While this could reduce immediate sell pressure, it also means reduced liquidity, which may amplify volatility during sharp price swings. 

Even so, sustained accumulation of exchanges supported a more stable mid-term base.

Source: CoinGlass

POL’s Open Interest signals caution 

Derivatives market data revealed that POL’s Open Interest fell 8.10% to $142.54 million at press time.

Traders scaled back Leveraged exposure after heightened volatility phases.

Lower Open Interest limited immediate swings but reflected weak conviction among short-term speculators.

By contrast, if Spot accumulation and TVL strength aligned, derivatives markets could provide the launchpad for stronger moves.

Source: CoinGlass

Can TVL strength offset short-term market caution?

Polygon’s fundamentals stayed firm, supported by its 29% share of U.S. Treasury Bill TVL. Yet near-term performance depended on holding $0.22 and clearing $0.2899.

With persistent outflows and weaker Open Interest, traders leaned cautious. Still, if accumulation persisted, POL could rebound and test higher resistance levels.