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

CaptainAltcoin
POL1,63%
KAS-2,09%
SUI-2,38%
ETH-1,04%

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.

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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.

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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

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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.

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