Polygon [POL] is among the widely used chains for payment, with its volume matching or even surpassing that of established networks like Solana [SOL].
In the past 24 hours, POL price has declined by more than 1% after breaking below a support level at $0.07161. The altcoin’s price is currently trading at around $0.06948. Despite the price action declining, its network activity and fundamentals are growing.
A look into Polygon’s strong network activity and fundamentals!
As per Sandeep Nailwal, the founder and CEO of Polygon, the network has burned over 107 million POL tokens in 2026 alone. He celebrated the moment on X by marking,
Officially net deflationary this year.
All this was happening despite Polygon minting over 105 million POL tokens. The burned tokens were coming from the base fees collected, which resulted in a slightly reduced circulating supply.
In contrast, Ethereum [ETH], Solana, and Sui Network [SUI] added hundreds of millions of dollars worth of new tokens to the market.
The high fees were coming from the spike in transactions as a payment protocol. In fact, Polygon had the highest stablecoin volume in May among all payment networks, recording 198 million.
At the same time, whale activity and staking were heightening.
For instance, a whale migrated 17.512 million MATIC to 17.512 million POL worth $1.25 million. This indicated some whales were still confident with the Polygon project.
At the same time, a multisig wallet linked to Stader Labs and Polygon staked 11 million POL worth $839.41K. In total, the wallet has staked over 28 million POL tokens, which has helped reduce circulating supply in the market and improve network security.
While the Polygon chain has continued to display strong fundamentals and network activity, its price action is tanking.
But why is POL price stalling?
Since towards the end of 2024, Polygon has been in a consistent descent. A keen look at its price action shows the altcoin entered a consolidation phase in the form of a triangle pattern, which is nearing a break point.
The weekly chart shows sellers have been highly dominant starting October 2025 as the Bull Bear Power indicator is red. The Cumulative Volume Delta [CVD] too shows selling, indicating 670K POL have been offloaded into exchanges.
Therefore, Polygon price is stalling because of the technical weakness even though its transaction count and burn rates were growing.
Final Summary
- Polygon has burned over 107 million POL tokens in 2026 while its transaction volume reached 198 million in May.
- POL price was trading in a triangle pattern as it has been falling since the end of 2024.
Be the first to comment