Polygon’s POL token made notable gains early on August 4, surging 9% to $0.225 before experiencing a pullback amid increased selling pressure. The rally was marked by high trading volumes, which nearly doubled the 24-hour average, reflecting strong investor interest in the token.
Polygon token shows short-term strength but long-term challenges remain
Despite its recent performance, POL remains significantly down from its all-time high of $2.92 in December 2021, a decline of over 90%. While the token rose as high as $0.225, selling pressure in the afternoon capped further gains, establishing key resistance levels.
Over the past 24 hours, POL has seen a 3% rise, outperforming the broader crypto market. In contrast, the CoinDesk 20 Index, which tracks major cryptocurrencies, dropped by 2.4%. The surge comes amid a general rally in the crypto market, but the long-term outlook for POL remains uncertain as it continues to recover from its historic high.
Polygon’s pivot toward scaling cross-chain and real-world asset tools
Polygon is focusing on expanding its platform to better integrate with other blockchains. The company’s new emphasis is on AggLayer, a cross-chain application that helps users connect to various blockchain networks. The push for scaling these cross-chain solutions, as well as developing tools for real-world assets and payments, signals Polygon’s ongoing efforts to stay competitive in a rapidly evolving blockchain landscape.
Polygon’s CEO and co-founder, Sandeep Nailwal, who took over as CEO of the foundation in June, has been vocal about strengthening the project’s strategy. The company aims to create a more robust offering to compete with other leading blockchain platforms.