Here’s Why Polygon (POL) Price Pumped 25%

CaptainAltcoin
POL-2,42%
KAS-0,99%
SUI0,9%
ETH-2,27%

Polygon (POL) has quietly become one of the strongest performers in the market over the past week. The POL price is up around 25% over the last seven days, even though price has barely moved in the past day.

At writing, POL is trading near $0.128, with daily trading volume up roughly 35%, placing it among the top gainers in the market.

This move did not come out of nowhere. It lines up with a clear jump in network usage, rising revenue, and a sharp increase in token burns.

_****Top Analyst Goes All In on Kaspa (KAS): Reveals Why It Beats Most Altcoins**

One of the biggest factors behind Polygon recent strength is revenue. Polygon moved into the top three on-chain revenue generators, flipping both SUI and Redbelly.

There has been an increase in stablecoins on the network, particularly due to the increase in transaction volume on the Polygon network, which is directly reflected in fees.

To accommodate the increasing demand, Polygon raised the gas limit to 65M and adjusted the parameters of EIP-1559 for smoother gas prices.

The network also aims to improve throughput. The goal is to exceed 5,000 transactions every second. These changes are meant to reduce congestion and support larger applications without slowing the network.

Daily transaction counts have backed this up. Polygon processed millions of transactions per day recently, with some days crossing the 3 million mark, showing that usage is not just theoretical.

Another major tailwind for POL is supply reduction. Polygon is now burning roughly 1 million POL tokens per day through base fees. If that pace holds, it could remove about 3.5% of the total supply annually.

At the same time, around 3.6 billion POL tokens are staked, which is roughly 34% of the circulating supply. That combination matters. Burns reduce supply permanently, while staking locks tokens out of circulation.

Together, they lower sell pressure and tighten available liquidity. This shift is happening while network demand is growing, which is why the market is reacting.

_****Ethereum (ETH) Just Hit a “Real” All-Time High That Nobody Is Watching**

What the Polygon Chart Is Showing

On the 4H chart, POL spent months moving lower before finally finding support around $0.10. Since that low, the POL price has started to step up gradually, with each pullback stopping higher than the last, showing that sellers are losing control.

This recent advance has occurred on increasing participation levels, leaving no doubt that this advance is supported by genuine participation levels and not a shallow bounce.  OBV has started to turn up after a long decline, suggesting accumulation rather than distribution.

Volatility remains relatively low, as shown by a muted ATR, which often appears during early trend shifts before momentum expands.

Funding rates are close to neutral, meaning the move has not been driven by excessive leverage. In short, the Polygon chart shows stabilization first, then gradual strength, not a blow-off move.

Source; Coinank

_****Here’s Why the XRP Price Pump May Be on Thin Ice**

What’s Happening Next For Polygon?

Beyond price action, Polygon is positioning itself for longer-term relevance. The ecosystem is expanding across payments, DeFi, privacy tooling through Miden, and AI-focused initiatives.

Large enterprises already use Polygon for real-world applications, which keeps fee revenue tied to actual usage rather than speculation. This recent POL price rally reflects that shift. The market is reacting to fundamentals catching up with price.

Moreover, Polygon (POL) 25% weekly move has already played out, which explains why price is consolidating today.

As long as the POL price holds above recent support and network metrics stay strong, the structure remains constructive.

This rally is not just about momentum. It is about usage, revenue, and supply tightening showing up at the same time. That is why POL has moved higher while much of the market has remained choppy.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Bitunix Analyst: Margin reduction combined with oil price shocks shifts market pricing towards "higher interest rates for a longer period"

CME lowers precious metals futures margin requirements, signaling increased market liquidity. The Middle East conflict has driven up energy prices, leading to a reassessment of inflation risks. The interest rate market pricing has shifted, with easing expectations cooling down, and funds focusing on U.S. non-farm payroll data, affecting economic and liquidity trends. The crypto market is also impacted, with short-term volatility rising.

GateNews11m ago

Culper Research shorted ETH, BitMine: Ethereum has entered a death spiral, Fusaka upgrade fee collapsed by 90%

Short-selling firm Culper Research publicly shorted Ethereum (ETH) and BitMine (BMNR), accusing the Ethereum Fusaka upgrade of causing transaction fees to plummet by 90%. The firm warned that the risk of a "death spiral" is increasing and questioned the sustainability of Ethereum's economic model. Culper cited Vitalik's recent sale of 20,000 ETH, indicating the founder's negative outlook on the current situation, and challenged the interpretation of active address growth, suggesting it may be the result of address poisoning attacks.

動區BlockTempo1h ago

Bittensor (TAO) Tests Crucial $180 Level Amid Renewed AI + Crypto Interest

Michaël van de Poppe's insights on TAO hint at a key resistance level at $180 that could lead to higher prices if surpassed. The token's tie to Bittensor and the AI-crypto narrative keeps it in focus as traders monitor its performance and volume for potential gains.

BlockChainReporter1h ago

HBAR Faces Renewed Pressure as $0.09 Support Weakens

Key Insights: HBAR price repeatedly failed to clear value area high resistance, reinforcing overhead supply and weakening bullish momentum within the current range structure. The $0.09 high timeframe support now defines short term direction as price rotates lower inside a clearly

CryptoFrontNews1h ago

Culper Research shorted Ethereum, citing the upgrade as the trigger for a death spiral

Culper Research report indicates that Ethereum's Fusaka upgrade caused excess block space, leading to a 90% drop in transaction fees, potentially entering a "death spiral" cycle, resulting in decreased staking demand and network security. The report mentions Vitalik Buterin selling large amounts of ETH, questioning Tom Lee's bullish outlook, and points out BitMine's loss risks held in Ethereum.

MarketWhisper1h ago

Pi Network Today's News: $0.20 Becomes the Bull-Bear Threshold, Token Unlock Adds Variables

Pi Network (PI) tokens recently surged in price, breaking through $0.1900, with a total increase of about 15%. Market sentiment has improved, and the fear index has risen back to 29. However, 20.8 million PI tokens will be unlocked on Saturday, which could increase selling pressure and pose a short-term risk to the price. If it can break through $0.1959, the target price is $0.2613; but a drop below the 50-day moving average could turn the trend bearish.

MarketWhisper2h ago
Comment
0/400
No comments