Polygon’s POL token experienced one of its largest monthly burn events in January, with 25.7 million tokens removed from circulation due to heightened network activity. Despite this supply reduction, POL’s price remains in a consolidation range, trading around $0.11 after a 9% daily gain, as broader market sentiment overshadows the deflationary mechanism’s immediate impact.
The token burn rate for Polygon‘s POL accelerated sharply in January, driven by higher on-chain activity. Data shows that 25.7 million POL tokens were burned, representing approximately 0.24% of the total supply.
This burn spike coincided with a clear increase in network activity on Polygon’s proof-of-stake chain. According to on-chain data, active accounts briefly surged to between 750,000 and 800,000 in early January before settling into a band of 400,000 to 500,000 daily active accounts.
The token’s price action remains cautious despite the accelerated burn. POL is trading around $0.11 to $0.113, up roughly 9–10% on the day, with its market capitalization at approximately $1.19 billion.
However, the broader chart structure shows POL remains well below its mid-2025 highs. Technical indicators reflect restraint, with POL’s relative strength index sitting near the low-40s.
At prevailing prices, January’s burn removed roughly $2.8 to $3 million worth of POL from circulation. This figure remains small relative to POL’s daily trading volume of over $130 million, limiting its immediate impact on price.
The deflationary effect is measurable but not yet large enough to override broader market sentiment. If elevated network usage persists, continued monthly burns would gradually compress POL’s effective supply over time.
