POL rebounded from $0.09 to $0.14, while CELO remained sluggish after falling from $0.5 to $0.12. Having both experienced market downturns, why is there such a significant difference in their recovery paths and strength? The answer lies in their fundamentals and market positioning.

**Narrative Cycle Determines Rebound Height**

What is POL now? It represents Polygon's transformation from a single-chain project to an L2 aggregation network. This is not just a simple token rebranding but a "new asset" accompanied by an upgrade of the entire ecosystem paradigm. The market has given it strong future imagination—leveraging the hot topic of Ethereum scalability and riding the wave of modular blockchain trends, which has allowed investors to see a clear growth story.

CELO's situation is different. It is undergoing an identity shift—from an independent mobile payment L1 to an L2 within the Ethereum ecosystem. The transition is real, but the cost is losing its uniqueness and being forced into competitive tracks like Arbitrum, Optimism, and Base. The market is still pondering where its new competitive advantage lies, and the narrative is not yet solid enough.

**The Gap Between Token Supply and Economic Expectations**

POL's incentive mechanism design aligns with its upgrade narrative, boosting market confidence in growth. In contrast, CELO needs to reprove its value capture ability under its new positioning.

This divergence reflects the new order of the L2 era—projects with strong narratives and clear positioning can garner market premiums, while those with uncertain identity only have to wait for real performance data to speak.