Polygon has burned 100 million POL tokens in a significant deflationary move, reaching a major milestone. The altcoin’s price rose 4% to $0.108, flipping a key technical indicator, as daily network fees remained above $500k. However, increased token supply on exchanges suggests persistent selling pressure.
Polygon continued to trade within a thin margin, still holding the $0.10 support level. The altcoin flipped its short-term moving average, signaling strengthening momentum.
At the time of writing, POL traded at $0.108, up 4.06% on the daily charts. This slight price uptick was backed by a 17% jump in trading volume, indicating increased on-chain activity.
According to an official report, Polygon has achieved a major milestone, burning 100 million POL. Typically, token burns help shrink the circulating supply, reduce inflation, and thus accelerate an asset’s upside momentum.
Even more importantly, sustained token burns reflect higher fees and network revenue, a sign of increased network usage and adoption. Daily Fees and Revenue have stabilized above $200k, with App Fees holding above $500k.
In the short term, Polygon’s token burns have tended to positively impact POL’s price. Notably, the altcoin’s Stochastic RSI made a bullish crossover and rose to 88.27.
With Stoch rising to such levels, it suggested strong upside momentum as demand stepped into the market. However, the signal remained roughly the same, suggesting a strong seller presence.
Such market conditions indicate a fierce struggle between bulls and bears for market control. For a bullish takeover, POL buyers must push for a daily close above key moving averages at $0.11.
Interestingly, despite continued token burns, POL’s inflation remains extremely elevated. According to Santiment data, the altcoin’s Stock-to-Flow Ratio continued to decline, falling to 8.6.
A drop in SFR suggests low scarcity and increased immediate supply. Even more so, the altcoin’s Exchange Supply Ratio surged to a monthly high.
When ESR rises, it suggests that a significant amount of Polygon has recently flowed into exchanges. Therefore, sellers are more active than buyers on exchanges, further straining the already overwhelmed market.
