What is Polygon on Dexscreener?

Polygon – Millions of Bitcoin Money USDT, USDC , DAI pour into the top 20 polygon matic tokens as progress can’t be slowed or stopped forever.

Polygon is an EVM-compatible layer-2 / sidechain ecosystem (though since it has multiple flavors, like Polygon PoS, zkEVM etc.). On Dexscreener, the “Polygon” tab shows every trading pair on decentralized exchanges (DEXes) that run on Polygon. This includes “new pairs,” gainers & losers, top volume, trending tokens, etc.

Here are a few of the key data points shown in that Polygon aggregate:

• 24H Volume: the total USD value of trades over the past 24 hours across all pairs on Polygon. (For example: ~$89.5M at the time I last checked)

• 24H Transactions (Txns): number of swap trades / transactions in that period (~825,000 in the same snapshot)

• Liquidity, Market Cap, Price Movements for individual pairs.

What Daily Trends on Polygon Look Like

From what I see and what others discuss, here are major trend patterns on the Polygon tab of Dexscreener:

1. High Volatility, Frequent New Listings & Pump-Potential Projects
   The Polygon network tends to have many new tokens / pairs appearing, often with small liquidity, meaning large price swings are possible – up or down. Traders are monitoring “new pairs” closely, hoping to catch early momentum. This is common in many DeFi ecosystems, but Polygon has the advantage of lower gas and faster transaction speeds than e.g. Ethereum mainnet, so smaller traders can more easily experiment.

2. Volume Spikes & Trending Tokens
   Tokens that suddenly get large trading volume tend to show up in “Trending” or “Gainers” filters. A spike in trades + volume often pulls in other traders via social media / FOMO. Some of that is organic, some may be driven by bots or coordinated trading patterns.

3. Liquidity Matters — but often shallow
   Many of the new pairs or trending tokens have relatively low liquidity. That means a big buy or sell can move the price a lot (high slippage) and can discourage larger traders from participating. Liquidity also affects how safe a trade is (smaller liquidity pools are more susceptible to manipulation or “rug pulls”).

4. Maker / Transaction Count Influence Rankings
   Besides just raw volume, the number of “makers” (unique wallets trading), number of transactions, and age of token / pair are used in filters / trending metrics. So a token that has many wallets buying/selling, steady action, etc., tends to trend more reliably.

5. Paid or Boosted Listings / Visibility
   Some projects / tokens apparently pay for visibility (advertising, promoted ads) or use bot-assisted trading / volume to try to game trending features. This is controversial, because it can mislead traders.

How Trading Works (on Polygon DEXes via Dexscreener Data)

Understanding how trading happens gives insight into who benefits and what to watch.

• DEX Trading Basics: On Polygon, trading on DEXes means using “swap” contracts (liquidity pools). You choose a token pair (say Token A / USDC), send Token A in, get Token B out, and the smart contract uses its liquidity pool to calculate price + apply a fee. Slippage (the difference between expected vs actual price received) depends on size of trade vs liquidity.

• Liquidity Providers (LPs): These are wallets that supply tokens to pools. They earn fees on trades proportional to their share of the pool, but face “impermanent loss” if token prices move significantly.

• Arbitrage & Cross-DEX Activity: Sometimes a token is priced slightly differently on two different DEXes (or two chains). Arbitrage traders move quickly to buy in cheaper pool, sell in more expensive one, pushing prices to align.

• Bot / Automated Trading: There are bots that monitor new pair creations, volume spikes, liquidity changes, etc., and try to get in early. These can accelerate trends or even drive false signals sometimes.

• Slippage & Gas/Transaction Costs: On Polygon, these are lower than many other chains, but they still matter. Big trades in low-liquidity pools pay more in slippage, which eats into profit.

Who Benefits from These Trends

Several groups tend to gain (and others can lose) from how Polygon’s Dexscreener activity plays out.

Risks / Who Loses / What to Watch Out For

While there are winners, there are significant risks and people who often lose out:

• Late Entrants often buy in after the hype, facing price dumps, slippage, or being left holding devalued tokens once the hype fades.

• Low Liquidity Tokens are subject to big price swings, front-running, slippage, or even liquidity being pulled (rug pulls).

• Manipulation & Gas Wars: Bots or whales can move price with large orders or coordinate through social media. Also, front-running bots can take advantage of people trying to trade on trend signals.

• Hidden Costs: Slippage, transaction (gas) fees, spreading losses from impermanent loss if providing liquidity.

• False Signals / Paid Boosts: Some tokens might appear trending because of paid promotions or bots rather than real organic demand. That can lead to traps.

What the Current Snapshot Suggests

Based on the live data I saw from Polygon on Dexscreener:

• Volume (~$89.5M in 24h) suggests healthy activity, though not massively large compared to Ethereum etc.

• Nearly a million transactions in the last 24h (~825k) – that’s a lot of small trades, showing many participants are active, likely with smaller ticket sizes.

• Trending / New Pairs / Gainers sections are particularly important now: lots of attention is on new token launches, people hoping to catch early momentum. This implies more risk, but also the potential for outsized gain.

What to Do If You Want to Take Advantage (Safely)

If you’re thinking of trading on Polygon using Dexscreener trends, here are some strategies / best practices:

1. Do your Due Diligence (DYOR)
   Check smart contract addresses, token team / website / social presence. Investigate liquidity: is it locked? How stable is the pool? Who are the major holders?

2. Watch Liquidity Closely
   Before entering, simulate slippage (many DEX UIs show this), see how deep the pool is. Low liquidity can kill gains.

3. Use Alerts & Filters
   Dexscreener allows setting alerts (price, volume, etc.). Also use filters: new pairs, gainers, volume thresholds. That way you don’t chase after the hype too late.

4. Limit Size, Scale Out
   Don’t put a large portion of capital into one speculative token. Consider taking partial profits when there’s run-up.

5. Be Wary of Promotions / Boosted Visibility
   If you see something trending but it seems “too good to be true,” check for signs of manipulation (e.g. large number of tiny transactions, extremely low liquidity, recent contract creation, paid promotions).