The Polygon blockchain has reported record-breaking stablecoin activity, processing 94 million transfers to outpace all major chains. This surge follows the U.S. Congress’s passing of the GENIUS Act, which has fostered mainstream stablecoin adoption as payment. Despite generating millions in fees and burning its POL token, the network’s native cryptocurrency has faced significant price declines, falling 42% over the past month.
The Polygon chain has capitalized on mainstream stablecoin adoption, achieving a major milestone. The network recently recorded 94 million stablecoin transfers, the highest among major chains.
This surge was backed by 5.2 million stablecoin addresses, driving the total stablecoin supply to $3 billion. The chain also registered $1.49 billion in USDC supply, a daily all-time high.
Increased usage generated substantial revenue, with $4 million in fees over 30 days. Neganweb3 noted $140,000 in fees were collected in the last 24 hours alone.
A portion of this revenue is being used for token burns, with 3 million POL burned recently. The total number of POL tokens burned has now reached 28.9 million.
However, the token’s Stock-to-Flow Ratio has declined to a low of 4.5. This suggests the burns have been insufficient to sustain higher scarcity for POL.
Despite the network activity, POL’s price has faced sharp downward pressure. At press time, POL was valued at $0.092, down 2.76% on the day and 42% for the month.
The altcoin is trading below its key moving averages, indicating bearish momentum. Its Stochastic Momentum Index is deep in negative territory at -38, signaling dominant selling pressure.
This market setup typically signals a continuation of the prevailing trend. If it persists, POL risks falling to between $0.08 and $0.09.
A reversal would require on-chain activity to translate into actual POL demand. Reclaiming the 20-day EMA at $0.1082 would signal a significant trend reversal.
