Polygon Reaches Token Burn Milestone Amid Ongoing Selling Pressure

Polygon, a popular Ethereum scalability solution, has reached a significant deflationary milestone by burning 100 million of its native tokens (POL). This move is expected to reduce inflation and accelerate upside momentum in the altcoin's price. However, recent data suggests that inflation remains elevated, which could impact the token's long-term prospects.

The Polygon network has seen increased on-chain activity, with a 17% jump in trading volume contributing to a 4.06% daily price gain for POL. The altcoin has also flipped its short-term moving average (EMA20), indicating strengthening momentum. However, the signal line of the Stochastic RSI remains below the indicator's value, suggesting that strong selling pressure persists.

The network's revenue and fees have stabilized above $200k and $500k, respectively, which is a positive sign for increased adoption and usage. Nevertheless, the exchange supply ratio has surged to a monthly high, indicating that a significant amount of POL has recently flowed into exchanges. This could exacerbate selling pressure in the short term.