Polygon burns 25.9 million POL: Supply tightens combined with on-chain capital inflow, is a price turning point coming?

Polygon announces the completion of a new token burn, permanently removing approximately 25.9 million POL, about 0.24% of the current circulating supply. The project team stated that if this pace continues, the total burn rate by the end of 2026 will approach 3%. This move is seen as an important step for Polygon to strengthen its token economy and tighten supply, aiming to gradually improve the long-term value structure of POL while network usage grows.

However, the short-term market response remains cautious. Affected by the overall weakness in the crypto market, POL price has fallen about 6%, and trading volume has decreased to approximately $108 million, indicating a temporary cooling of trading activity. But this has not changed the trend of fundamental improvement. Polygon founder Sandeep Nailwal said on social media that there is a direct correlation between network activity and token value; the more frequently the PoS chain is used, the more POL is burned, and the supply will continue to tighten.

On-chain data is providing further support. In the past 24 hours, the number of daily transactions on the Polygon network has risen to about 6.6 million, reaching a new high in over a month, reflecting a rebound in demand for block space. Meanwhile, cross-chain fund flows have also shown positive changes. Bridge Netflow data indicates that Polygon experienced a net inflow of about $7 million in a single day, mainly from the Ethereum ecosystem, showing that funds are gathering toward this network.

At the spot level, signs of accumulation are also visible. Over the past week, POL net inflow was about $4.2 million, and in the last 24 hours, it continued to see slight inflows. If overall market sentiment stabilizes, the combined effect of on-chain activity and capital accumulation could provide medium-term support for the price.

From a technical perspective, POL has broken through the descending trendline that had been suppressing it for several weeks. Although there was a pullback afterward, the price remains above the key resistance-turned-support zone. As long as this structure is not broken, the market still has the opportunity to attempt a new upward move.

Against the backdrop of gradually decreasing supply, increased network usage, and improved capital flow, POL is at a critical stage of a fundamental shift, and its subsequent performance warrants ongoing attention.