Polygons POL token has gained nearly 12%since the network permanently removed 100 million tokensfrom circulation on September 23.
The price has climbed to around $0.113, but its next challenge is holding above the $0.11price level and overcoming resistance near the $0.115price area.
Polygon permanently removes 100M POL
Polygon Foundation CEO Sandeep Nailwal confirmed that the network had completed the burn, which removed about 1% of POLs total supply.
The on-chain transaction shows that 100 million POL, worth around $10.22 millionat 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 Polygons 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 $0.113price 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 $0.115level. 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 $0.115price area, it could approach the $0.12price level. But the $0.12–$0.125region may prove more difficult because the price saw a sharp rejection there earlier in September.
If POL stays above the $0.11price 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 $0.110price 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 $0.102price 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.