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

CaptainAltcoin
POL-0,41%
KAS-2,61%
SUI0,47%
ETH-0,76%

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

US Spot Bitcoin ETFs See Renewed Inflows as Selling Pressure Eases

Bitcoin ETFs have seen increased institutional demand, with notable inflows despite overall outflows. Analysts label recent downturns as the weakest bear case in Bitcoin's history, indicating resilience among early investors amid rising financialization concerns.

TheNewsCrypto30m ago

Recent Drawdowns Prove That The Bitcoin Four-Year Cycle Is Still Intact

Kaiko Research indicates that Bitcoin's four-year cycle remains stable, with current price corrections aligning with historical patterns following a peak. The cycle consists of accumulation, halving, a surge to a new high, and subsequent corrections.

Blockzeit52m ago

Starpath launches Pi coin testnet! Technical breakthrough can't prevent the $0.14 crash

Starpath is now live on the Pi Network testnet, providing a risk-free environment for users to experiment with trading and familiarize themselves with Web3. Developers can test applications. It serves as an educational bridge to turn complex concepts into practice. But the harsh reality is: the February migration of 300 million caused the biggest impact, with prices continuously falling close to 0.14, and OTC sell-offs brewing. Technological advances cannot change the overwhelming supply flood that crushes demand.

MarketWhisper8h ago

XRP Today's News: White House Key Negotiation on February 10, ETF Attracts Funds, Decouples from Bitcoin

XRP has risen for two consecutive days, with the focus shifting to the White House Market Structure Bill meeting on February 10. It is expected that a consensus on stablecoin yields will boost demand. XRP ETF inflows are strong, but Bitcoin ETF funds are flowing out. In the short term of February, the outlook remains bearish, but the medium term is bullish.

MarketWhisper8h ago

Bitcoin's bottom still not found! VRP indicator plunges 45%, experts warn that a second wave of decline is imminent

According to GreekLive analysis, the recent market has been stable, but implied volatility (IV) has significantly declined, causing the one-week volatility risk premium (VRP) to drop rapidly from +20% last week to -25%, a decrease of about 45%, setting a record. This reflects the market's quick adjustment of expectations for future volatility, but Bitcoin's volatility shows notable clustering, and institutional sentiment may be overly optimistic. The irrationality in the options market has increased, and historical experience indicates that Bitcoin's bottom has not yet been confirmed.

MarketWhisper8h ago

Coin distribution in February shifted 300 million tokens, the most aggressive ever! The key defense line has been breached, risking a collapse to $0.128.

Pai coin has declined for the third consecutive trading day, with the downward trend aligning with the stable migration to the mainnet, potentially increasing selling pressure. On Monday, 33.06 million Pai coins were transferred to the mainnet, bringing the total transfer volume in February to approximately 300 million coins. The CEX supporting Pai coin recorded 324,152 coins outflow in the past 24 hours. Typically, withdrawals from CEX indicate easing selling pressure, but this suggests that supply pressure mainly comes from off-exchange channels, including OTC.

MarketWhisper9h ago
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)