Why did the price of POL go up?

Polygon (POL) increased by 4.31% in the past 24 hours, outperforming the overall crypto market, which rose by 1.15%. This growth is driven by a positive tokenomics proposal, strong technical signals, and growing use of Polygon for real-world assets (RWA).

1. Tokenomics Proposal – An investor suggests stopping inflation and starting buybacks to support the token’s value.
2. Technical Breakout – POL’s price surpassed important resistance levels, showing upward momentum.
3. RWA Adoption – The launch of a tokenized fund backed by Standard Chartered highlights Polygon’s practical uses.

Deep Dive

1. Tokenomics Proposal (Positive Outlook)

Overview:
On October 6, an activist investor named Venturefounder proposed ending Polygon’s 2% yearly inflation (which adds 200 million new tokens annually) and introducing buybacks funded by the treasury. The goal is to reduce selling pressure and better match POL’s supply with its role as a top Ethereum scaling solution.

What this means:
Buybacks, a strategy used by coins like BNB and ETH, tend to increase token value by creating scarcity. This proposal aims to reverse POL’s 46% annual price drop and could boost investor confidence. However, there is ongoing discussion about how to fund rewards for network validators without inflation.

What to watch:
Look for the Polygon Foundation’s official response expected by mid-October and monitor how much POL validators are staking on the network.

2. Technical Momentum (Mixed Signals)

Overview:
POL’s price moved above its 7-day simple moving average (SMA) at $0.238 and passed the 50% Fibonacci retracement level at $0.2495. The MACD indicator turned positive (+0.0024), suggesting bullish momentum, and the RSI at 55 indicates there’s room for more gains.

What this means:
Traders are reacting positively to the $0.24–$0.25 support zone holding firm after a 10.85% weekly price increase. However, the 30-day SMA at $0.2479 remains a resistance level. If POL closes above $0.25, it could aim for $0.269, the next Fibonacci target.

Key level:
If the price falls below $0.238, the recent breakout would be invalidated, possibly leading to a retest of $0.227.

3. RWA Adoption (Bullish Impact)

Overview:
Standard Chartered is providing custody services for AlloyX’s $2 billion tokenized money market fund launched on Polygon on October 2. Stablecoin transfers on Polygon have surged over 900% since 2023, now reaching 500,000 transactions per day.

What this means:
Institutional investors see Polygon as a cost-effective platform for regulated assets. Real-world assets now make up 29% of Polygon’s total value locked (TVL) at $1.23 billion, putting it on par with Ethereum. This supports the trend of investors favoring cryptocurrencies with real-world utility.

Conclusion

Polygon’s recent price increase reflects both hopeful speculation about supply changes and real progress in attracting institutional use. While technical indicators and market sentiment are positive, the long-term outlook depends on whether the tokenomics proposal passes and if RWA adoption continues to grow.

Key watch: Will POL maintain its position above $0.25 following Binance’s Rio upgrade pause on October 8?

What could affect the price of POL?

Polygon’s price is caught between efforts to improve its token economics and its plans to scale the network.

1. Tokenomics Overhaul Proposal – A push to reduce inflation and introduce buybacks, which could boost the price if approved.
2. Rio Hard Fork (Oct 8) – A major upgrade aiming for 5,000 transactions per second (TPS) to increase real-world use.
3. Layer-2 Competition – Growing rivals like Arbitrum pose a threat to Polygon’s market share.

Deep Dive

1. Inflation Cut & Buyback Debate (Mixed Impact)

Overview:
Polygon’s community is considering a proposal to stop the current 2% yearly inflation of POL tokens (about 200 million new tokens each year) and replace it with buybacks funded by the project’s treasury. This comes after POL’s price dropped 46% over the past year, falling below lows seen during the 2022 bear market. The idea is similar to Binance Coin’s (BNB) token burn strategy, which has helped support its price. However, concerns remain about how validators (who secure the network) will be rewarded without inflation.

What this means:

• Positive: Fixing the token supply and reducing the number of tokens sold on the market could help stabilize or increase the price, especially if combined with token burns.
• Negative: If the proposal is rejected, negative sentiment may continue. Even if approved, the success of buybacks depends on how much funding the treasury has to support them (Cointelegraph).

2. Rio Upgrade & Scalability Push (Bullish Impact)

Overview:
The Rio hard fork, scheduled for October 8, will introduce new features like PIP-64 (which lets validators elect block producers) and PIP-72 (stateless verification) to increase the network’s speed to 5,000 TPS. This upgrade is part of Polygon’s GigaGas plan to better support tokenized assets and global payment systems.

What this means:

• Higher transaction speeds could attract big institutional projects dealing with real-world assets (RWA), such as AlloyX, which has over $2 billion in NFT sales.
• If the upgrade goes smoothly, it could bring more developers back to Polygon. If it fails, competitors like Optimism and Base might take the lead (Cryptotimes).

3. Layer-2 Wars Intensify (Bearish Risk)

Overview:
While Polygon holds about 29% of the total value locked (TVL) in layer-2 solutions, the competition is fierce. Arbitrum leads DeFi with 2.5 times more TVL, and new players like Gate Layer offer speeds up to 5,700 TPS, surpassing Polygon’s current capabilities.

What this means:

• Losing developer interest could slow Polygon’s growth, as reflected by POL’s 68% price drop over six months.
• However, partnerships with companies like JPMorgan and Stripe could help Polygon maintain relevance if real-world adoption increases (Coinspeaker).

Conclusion

Polygon’s future depends on successfully delivering the Rio upgrade and managing inflation-related token supply issues. Expect price swings around the October 8 upgrade and tokenomics vote. Keep an eye on POL’s 50-day simple moving average (SMA) at $0.233 — a sustained move above this could push the price toward $0.29, while failure to hold may lead to a retest of $0.21.

Will Polygon’s real-world asset partnerships be enough to counter its declining role in DeFi?

What are people saying about POL?

The Polygon community is divided between excitement about upcoming upgrades and doubts about the token’s price. Here’s what’s trending:

1. 97.8% migration to POL – Positive sign for network use and growth
2. $1.23 billion in total value locked (TVL) + 45,000 decentralized apps (dApps) – Ecosystem expansion boosts optimism
3. Leadership change – New CEO faces pressure as token price struggles

Deep Dive

1. @0xPolygon: Nearly complete switch from MATIC to POL 🚀 positive

"97.83% of MATIC tokens have been upgraded to POL...check out the Polygon Portal"
– @0xPolygon (5.2M followers · 12K impressions · August 20, 2025)
View original post
What this means: This is a good sign for POL. Almost everyone has moved from the old MATIC token to the new POL token, which helps clear out old tokens and increases POL’s use on Polygon’s improved blockchain network.

2. @Tokocrypto: Ecosystem growth speeds up 📈 mixed feelings

"Total value locked hits $1.23 billion, with over 45,000 dApps...analysts expect the price to double" (translated from Indonesian)
– @Tokocrypto (887K followers · 8.4K impressions · September 1, 2025)
View original post
What this means: This is somewhat positive. The network is growing fast, with more money and apps using it. However, the POL token price hasn’t kept up and is still 64% lower than it was in December 2024.

3. CoinMarketCap: Leadership change during price drop 🛠️ cautious

Sandeep Nailwal named CEO as POL price falls 68% in six months; plans to upgrade network to 5,000 transactions per second (TPS)
– Community post (361K views · June 11, 2025)
View article
What this means: This is a cautious sign. Investors are worried about the leadership change while the token price is weak. Still, the planned upgrade to increase network speed could help POL’s value in the long run.

Conclusion

Opinions on POL are mixed. People are optimistic about the technical upgrades like the 5,000 TPS goal and the near-complete migration to POL, but concerned because the token price is down 34.6% year-over-year. Watch the $0.25 price level closely: if POL stays above this, it could confirm a positive trend; if it falls below, it might test support at $0.16. Keep an eye on final migration numbers through the Polygon Portal to gauge the network’s health.

What is the latest news about POL?

Polygon is navigating changes in its token economics and technical upgrades while securing important partnerships with big institutions. Here are the latest updates:

1. Tokenomics Change Proposal (October 6, 2025) – An activist investor suggests ending POL’s 2% yearly inflation and starting buybacks.
2. Binance Pauses POL for Rio Upgrade (October 3, 2025) – Polygon is preparing a major upgrade to handle 5,000 transactions per second (TPS).
3. Standard Chartered Supports Real-World Asset Fund (October 2, 2025) – A new tokenized money-market fund launches on Polygon with backing from Standard Chartered.

Deep Dive

1. Tokenomics Change Proposal (October 6, 2025)

What’s happening: Venturefounder, an activist investor, wants to stop POL’s 2% yearly inflation, which currently adds about 200 million tokens each year. Instead, they propose using treasury funds to buy back tokens. The goal is to reduce selling pressure and better align POL’s supply with Polygon’s growth plans. Polygon’s leadership is considering this, sparking discussions about how validators (those who help secure the network) will be rewarded in the future.

Why it matters: If approved, this could be good for POL because fixed supply models (like Binance Coin’s) tend to reduce token dilution. However, cutting inflation might make it harder to pay validators unless new income sources are found. (Cointelegraph)

2. Binance Pauses POL for Rio Upgrade (October 3, 2025)

What’s happening: Binance temporarily stopped POL deposits and withdrawals on October 8 to support Polygon’s Rio upgrade. This upgrade aims to boost the network’s speed to 5,000 TPS using new technologies called PIP-64 and PIP-72.

Why it matters: In the short term, this pause limits liquidity, which is neutral for POL. But in the long run, the upgrade makes Polygon a faster and more efficient platform for payments and tokenizing real-world assets, competing with other popular blockchains like Solana and Ethereum Layer 2 solutions. (Cryptotimes)

3. Standard Chartered Supports Real-World Asset Fund (October 2, 2025)

What’s happening: AlloyX and Polygon Labs launched RYT, a tokenized money-market fund that Standard Chartered will custody. This fund offers fast settlement (next-day) and transparent on-chain records, initially available only on Polygon.

Why it matters: This is a positive development for POL’s use case. Polygon now controls 62% of the global tokenized bond market, with over $1.13 billion in real-world asset value locked on the network. Institutional interest like this could increase demand for POL as a token used for transaction fees and staking. (Yahoo Finance)

Conclusion

Polygon is balancing big technical improvements with efforts to stabilize POL’s value through changes in tokenomics and real-world asset adoption. While cutting inflation could make POL scarcer, the network needs to ensure validators remain motivated. With Binance supporting scaling upgrades and Standard Chartered backing custody solutions, Polygon is positioning itself as a leading blockchain for real-world assets.

What is expected in the development of POL?

Polygon’s roadmap is centered on improving scalability, enabling cross-chain connections, and expanding into real-world assets.

1. AggLayer Integration (Q4 2025) – Connects different blockchains for smoother asset transfers.
2. Rio Hard Fork (October 8, 2025) – Boosts transaction speed to over 5,000 per second.
3. Gigagas Roadmap (2026) – Aims for 100,000 transactions per second to support global payments.
4. RWA Expansion (Ongoing) – Growing presence in tokenized bonds and private credit markets.
5. Institutional Adoption (Q4 2025) – Partnerships in the Middle East to attract traditional finance investors.

Deep Dive

1. AggLayer Integration (Q4 2025)

Overview: Polygon PoS will link up with AggLayer, a protocol that allows different blockchains to work together seamlessly. This upgrade follows the near-complete migration from MATIC to POL tokens and supports Polygon’s goal of creating an “Internet of Blockchains.”
What this means: This is positive for POL’s usefulness, as AggLayer could increase demand for staking and cross-chain transactions. However, Polygon faces competition from other interoperability projects like Cosmos and Polkadot.

2. Rio Hard Fork (October 8, 2025)

Overview: The Rio upgrade introduces new features to improve network speed and efficiency, targeting over 5,000 transactions per second (TPS). It also lowers the hardware requirements for validators, making it easier to participate in network security (source).
What this means: This upgrade could attract more decentralized applications (dApps) to Polygon, which is a positive sign. However, some short-term price fluctuations are expected during the upgrade process.

3. Gigagas Roadmap (2026)

Overview: Announced in mid-2025, this plan aims to reach 100,000 TPS through phased improvements, including the Bhilai testnet currently running at 1,000 TPS. Polygon is also partnering with companies like Stripe and BlackRock to bring traditional finance onto its network (CoinMarketCap).
What this means: If successful, Polygon could become a major platform for global payment systems. However, the technical challenges involved make this a high-risk goal.

4. RWA Expansion (Ongoing)

Overview: Polygon currently controls 62% of the tokenized bond market, with $1.13 billion in total value locked (TVL), and is expanding into private credit. Recent upgrades have improved compliance tools for institutional investors (Coinspeaker).
What this means: This growth is positive for POL’s demand as a collateral asset, but regulatory hurdles, especially in regions like the EU, could slow progress.

5. Institutional Adoption (Q4 2025)

Overview: Polygon Labs has teamed up with Cypher Capital to offer structured yield products aimed at family offices and traditional finance institutions in the Middle East. This follows POL’s listing on Bitso and a 900% increase in stablecoin volume since 2023.
What this means: This partnership should improve liquidity and price stability for POL. However, relying on centralized partners may raise concerns about how decentralized the network remains.

Conclusion

Polygon’s roadmap combines technical improvements (AggLayer, Rio) with ecosystem growth (real-world assets and institutional partnerships). The main question is whether POL’s token model can continue to reward validators fairly while keeping fees low as the network scales. Keep an eye on AggLayer adoption and tokenized asset growth after the Rio upgrade.

What updates are there in the POL code base?

Polygon’s technology is moving forward with key updates like completing its token migration, improving transaction speed, and offering new rewards for stakers.

1. Migration Finalization (September 3, 2025) – Almost all MATIC tokens have been switched to POL, which is now the main token on Polygon PoS.
2. Heimdall v2 Upgrade (July 10, 2025) – The system that confirms transactions was upgraded, cutting confirmation time to about 5 seconds.
3. Agglayer Breakout Program (Ongoing) – POL holders who stake their tokens can earn rewards and qualify for special giveaways from projects in the Polygon ecosystem.

Deep Dive

1. Migration Finalization (September 3, 2025)

What happened: Nearly all MATIC tokens on Polygon PoS have been converted to POL, completing a year-long process. POL is now used for paying fees and securing the network through staking.

The exchange rate stayed the same (1 MATIC = 1 POL). The system also dedicates 2% of new tokens to reward validators and support community projects. The update was designed to avoid problems for apps and users.

Why it matters: This is good news for POL because it makes the token the main currency for fees, staking, and future cross-chain uses through Agglayer. (Source)

2. Heimdall v2 Upgrade (July 10, 2025)

What happened: Polygon replaced its old transaction confirmation system (Tendermint) with a new one called CometBFT. This change reduced the time it takes to confirm transactions from about 90 seconds to just 5 seconds.

The upgrade also cleaned up old code, improved how network nodes sync, and lowered the chance of transaction errors. Validators now process blocks faster (every 2 seconds instead of over 3 seconds).

Why it matters: While this doesn’t immediately affect POL’s price, it’s positive for the future. Faster transaction confirmations improve user experience for payments and decentralized finance (DeFi), which can attract more users. (Source)

3. Agglayer Breakout Program (Ongoing)

What happened: POL holders who stake their tokens on Ethereum can earn rewards and become eligible for airdrops from projects like Katana and Miden. This is part of Agglayer’s effort to connect multiple blockchains under Polygon’s network.

Why it matters: This program encourages people to stake POL by offering real rewards and helps grow the Polygon ecosystem. It could increase demand for POL as it gains more uses beyond Polygon PoS. (Source)

Conclusion

Polygon is focusing on making its network faster, more useful, and rewarding for users. With the POL migration nearly done and technical improvements in place, the question is whether these changes will lead to more consistent activity and growth on the network.