Polygon (POL) gained 5% over the past 24 hours before retracing slightly at the time of writing. Daily trading volume is approximately $50 million, with liquidity increasing by a volume-to-market cap ratio of 5.44%.
The main driver of this resurgence in POL price action is the network’s thriving activity. Whales have also been pumping capital into the altcoin in recent days.
Polygon transaction activity hits one-month peak
Polygon processed nearly eight million transactions per day, the highest number of daily transactions this month.
To be more precise, this figure is slightly higher than 7.95 million, but has since started to decline. However, the volume remains significant, averaging more than 7 million per day.
In total, Polygon has processed more than 7.54 billion transactions since its launch. Activity exploded with the launch of payment infrastructures. Polygon now supports over 5,000 payments per second.
At the same time, POL’s stablecoin supply has increased, with a market capitalization above $3.45 billion. Notably, Polygon has become the eighth largest network in terms of stable market capitalization. However, the network only has 102 validators, which raises questions around decentralization.
However, decentralization is not only determined by the number of validators, but also who controls them, the distribution of stakes, the governance structure and the diversity of validators.
Do whales charge POL tokens?
In terms of capital inflows, whales appear to be buying the altcoin.
According to Arkham, one wallet deposited approximately $310,000 worth of USDC into FalconX. The wallet then purchased 6 million POL tokens worth $474,000 at an average price of $0.07899.
This move indicates accumulation in hopes that the current uptrend continues. Alternatively, Polygon could use FalconX to facilitate token sales.
Can POL price extend its two-day rally?
Polygon price broke above a horizontal resistance at $0.08135, which previously kept the altcoin in a sideways range. The support level for this range is $0.07232. At press time, the Relative Strength Index (RSI) was up with a reading of 70, suggesting buying activity. The Bull Bear Power (BBP) indicator also confirmed the strength of the buyers.
If the price remains above the $0.08135 level, it could reach a target of $0.09511. However, there is a resistance hurdle at $0.08806.
Conversely, a break below the $0.08135 area would mean further consolidation or decline. With increased network activity and influx of whale capital, POL price could reach higher heights.
Final Summary
- The Polygon network has processed approximately 8 million, for a total number reaching 7.54 billion and 102 validators.
- POL has broken out of a sideways consolidation, but only staying above $0.080 can mean further appreciation.
