ambcrypto.com
Polygon’s $POL token has gained nearly 12% since the network permanently removed 100 million tokens from circulation on September 23.
The price has climbed to around $0.113, but its next challenge is holding above the $0.11 price level and overcoming resistance near the $0.115 price area.
Polygon permanently removes 100M $POL
Polygon Foundation CEO Sandeep Nailwal confirmed that the network had completed the burn, which removed about 1% of $POL’s total supply.
The on-chain transaction shows that 100 million $POL, worth around $10.22 million at the time, was destroyed on September 23.
When there is a burn, it permanently removes crypto from circulation. The idea is that if the available supply is reduced, the remaining tokens will become more scarce, but this is if demand is steady or increases.
The tokens that were burned were from network fees that had accumulated inside Polygon’s fee-collection system.
The burn also introduces a process that allows the community to trigger future fee-funded burns. This connects the amount removed from circulation more closely to activity on the Polygon network.
$POL approaches an important price barrier
$POL was trading near the $0.113 price area at the time of this writing. It was up by about 11.6% from its level around the burn date.
It briefly reached the $0.11497 price area during the latest session but failed to remain above the $0.115 level. As a result of not being able to remain above this level, this makes that area the nearest test for buyers.
If it is able to move above the $0.115 price area, it could approach the $0.12 price level. But the $0.12–$0.125 region may prove more difficult because the price saw a sharp rejection there earlier in September.
If $POL stays above the $0.11 price level, it gives some encouragement. Its recent recovery has also put it above several price averages that previously held it back.
If the price drops, the first area to watch is between the $0.107 and $0.110 price areas. But if it holds that range, that means that buyers are still supporting the recovery.
A fall below it could bring it back towards the $0.102 price area, close to where the latest post-burn advance began.
The burn provides Polygon with a stronger supply-reduction story, but it does mean price will continue to increase further. $POL must still see enough demand to defend its recent progress.
Final Summary
- Polygon permanently burned 100 million $POL, which is about 1% of its total supply.
- $POL has increased by about 12% since the burn, but still needs to hold above the $0.11 price area and clear the $0.115 price level.