Polygon has initiated a 25.9 million POL token burn to tighten its circulating supply, aiming for a 3% reduction by year-end. Despite this fundamental move and a surge in on-chain transactions, POL’s price fell 6.46% in alignment with a broader market downturn, while trading volume declined by 26% to $108 million.
Polygon has executed a protocol-level burn of 25.9 million POL tokens to reduce its circulating supply. The move is part of a broader plan to remove roughly 3% of the token’s supply by the end of 2026.
Network activity surged to 6.6 million daily transactions, the highest level in over a month. Polygon founder Sandeep Nailwal stated that “POL’s value accrual is clearly defined—more usage on the PoS chain means more POL tokens get burnt. Simple.”
The network also recorded strong capital inflows of $7 million over the past day, ranking second among major chains. More than 90% of these inflows originated from the Ethereum ecosystem, according to bridge netflow data.
Spot traders on centralized exchanges have gradually increased exposure, with a net inflow of $4.2 million over the past week. A further $200,000 flowed in over the last 24 hours alone, according to exchange data.
On the daily price chart, POL recently broke above a descending resistance line that had suppressed its price for weeks. However, the following day’s price action was bearish, pulling the token lower despite the breakout.
The price continues to hold above the former resistance level, keeping the underlying bullish structure intact. A sustained breakdown below this level would, however, delay any meaningful recovery.
