Why did the price of POL go up?
Polygon (POL) increased by 5.89% in the last 24 hours, outperforming the overall crypto market, which rose by just 0.17%. This growth is driven by three main factors: the launch of the Open Money Stack, record-breaking token burns, and strong technical momentum in price movement.
- Open Money Stack Launch (Positive Impact)
- Token Burns & Network Activity (Positive Impact)
- Technical Breakout (Strong Momentum)
Deep Dive
1. Open Money Stack Launch (Positive Impact)
Overview: On January 10, Polygon introduced the Open Money Stack, a flexible system designed to improve global payments and stablecoin transactions. This makes POL the key token that powers and secures the network.
Why it matters:
- Big companies like Revolut and Stripe already use Polygon for stablecoin payments. This new system strengthens Polygon’s role in real-world financial transactions, which could increase demand for POL.
- Polygon’s CEO, Sandeep Nailwal, described this launch as essential for “the next thirty years of money movement,” highlighting growing interest from traditional financial institutions in blockchain technology.
What to watch: Keep an eye on how many businesses adopt the Open Money Stack and new partnerships with established financial companies.
2. Token Burns & Network Activity (Positive Impact)
Overview: On January 5, Polygon burned 3.1 million POL tokens, the highest amount in several months, reducing the total supply as demand grows. The network also reached a record 1.4 billion transactions in 2025.
Why it matters:
- Burning tokens reduces the number of coins available to sell, which can support higher prices. Currently, over 1 million POL tokens are burned daily, tightening supply.
- The number of active users increased by 25% since December 2025, showing that more people are using the network for real purposes, not just trading.
What to watch: Watch if the high burn rates and transaction volumes continue, especially after the upcoming AggLayer v0.3 update expected in early 2026.
3. Technical Breakout (Strong Momentum)
Overview: POL’s price broke through the $0.14 resistance level (which is now acting as support) and climbed to $0.179. Key technical indicators show strong buying momentum:
- RSI 14: 84.67 (indicates the asset is overbought but still strong)
- MACD: Shows a bullish crossover with increasing momentum (+0.00746).
Why it matters:
- Traders are aiming for a price range between $0.20 and $0.22 if POL stays above $0.16. If it falls below, it might test the $0.14 support again.
- Trading volume increased by 167% during this rise, confirming strong interest from buyers.
What to watch: Monitor how the price behaves around $0.18 to $0.20, which is the next key resistance level based on Fibonacci retracement.
Conclusion
POL’s recent price increase is supported by important upgrades like the Open Money Stack, supply reductions through token burns, and strong technical signals. While some indicators suggest caution due to overbought conditions, the overall network fundamentals are improving.
Key points to watch: Can POL maintain its price above $0.16 and attract more institutional investors after the upgrade? Keep an eye on token burn rates and the adoption of AggLayer for further confirmation.
What could affect the price of POL?
Polygon’s price outlook depends on innovations in payments, how its token supply changes, and how mature its network becomes.
- Open Money Stack Launch – A flexible payments system that could attract big institutions (positive).
- Faster Token Burns – Increased token burning reduces supply as demand grows (positive).
- AggLayer Development – Efforts to connect multiple blockchains face competition (mixed).
In-Depth Look
1. Open Money Stack & Payments Growth (Positive Impact)
Overview:
Polygon introduced the Open Money Stack in January 2026, a system designed to handle stablecoin payments worldwide. Partners like Stripe have already processed over $50 million in transactions. In 2025, Polygon handled 1.4 billion transactions, making it the top Layer 2 network in revenue for a full week.
What this means:
This development makes Polygon a key player in payment processing, especially for institutions looking for fast and affordable options. Similar to Ethereum’s growth during the DeFi boom, real-world use cases like this tend to support longer-lasting price increases rather than short-term speculation.
2. Token Burns & Staking Effects (Positive Impact)
Overview:
On January 5, 2026, Polygon burned 3 million POL tokens—a 400% increase compared to the last quarter of 2025. These daily burns now cancel out about 40% of the yearly inflation caused by staking rewards. More than one-third of all POL tokens are currently staked, which means fewer tokens are available to sell.
What this means:
With tokens being burned faster, the total supply is shrinking, which can push prices up if demand stays strong. This is similar to Binance Coin’s (BNB) price increases driven by token burns in 2023 and 2024 (CoinGape).
3. AggLayer Adoption vs. Layer 2 Competition (Mixed Impact)
Overview:
Polygon’s AggLayer version 0.3 aims to connect liquidity across different blockchains by early 2026. However, competitors like Arbitrum and Coinbase’s Base are gaining ground in decentralized finance (DeFi). As of January 2026, Polygon’s total value locked (TVL) is $3.5 billion, behind Arbitrum’s $4.1 billion.
What this means:
AggLayer’s success depends on attracting developers and users away from rivals. While Polygon is strong in payments, if it can’t keep up in DeFi, its growth potential might be limited. Key indicators to watch include cross-chain liquidity and how many decentralized apps (dApps) move to Polygon.
Conclusion
Polygon’s 2026 prospects show strong positive signs from payments adoption and token supply reduction, balanced by challenges from competing Layer 2 networks and broader market uncertainties. The main question is: Will AggLayer’s cross-chain liquidity outperform Ethereum’s own scaling solutions? Watch the $0.16–$0.20 price range—holding this level could signal a move toward $0.25 or higher.
What are people saying about POL?
Polygon's POL token is gaining attention due to a mix of technical momentum and ongoing discussions about its rebranding. Here’s what’s happening:
- Price jump sparks optimistic technical talk – POL is up 50% this week, aiming for $0.18 or higher.
- Launch of Open Money Stack boosts payment use case – Stablecoins are playing a key role.
- Confusion over MATIC-to-POL name change continues – Traders debate whether the rebrand helps or hurts the token’s value.
Deep Dive
1. @CryptoBusy: Record token burns show strong network demand bullish
"Top chain by revenue last 7 days – largest single-day POL burn in PoS history"
– @CryptoBusy (186K followers · 10.6K impressions · 2026-01-09 14:00 UTC)
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What this means: Polygon is destroying (or “burning”) over 3 million POL tokens daily. This reduces the total supply, which can increase value. At the same time, rising transaction fees show more people are using the network, supporting Polygon’s shift toward payment services.
2. @Zzullerr: Trending on CoinMarketCap drives FOMO (fear of missing out) bullish
"POL up 15% this week – only top 200 coin green"
– @Zzullerr (14.1K followers · 1.7K impressions · 2026-01-09 13:30 UTC)
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What this means: More retail investors are noticing POL’s price gains, which can push the price higher. However, for this momentum to last, POL needs to stay above key support levels, like $0.16.
3. @ambcrypto: Branding confusion remains a challenge bearish
"95% of Polygon users still confused by MATIC→POL rebrand"
– AMBCrypto (2025-11-27 00:00 UTC) Source
What this means: Many users are still unclear about the switch from MATIC to POL, which could slow down wider adoption. This uncertainty might weigh on the token’s sentiment despite technical improvements.
Conclusion
Overall, the outlook for POL is cautiously optimistic. Strong on-chain activity and the new Open Money Stack project suggest solid fundamentals. However, the token needs to break through the $0.18 resistance level to confirm a full recovery from last year’s lows. Keep an eye on the Relative Strength Index (RSI), currently at 84.67 — this indicates the token might be overbought, which could lead to some profit-taking. Still, as long as POL holds above $0.15, the upward trend remains intact.
What is the latest news about POL?
Polygon (POL) is gaining momentum thanks to key upgrades and token burns. Here’s what’s driving the recent surge:
- Open Money Stack Launch (Jan 10, 2026) – A new payment system is attracting more institutional interest.
- Record 3 Million POL Burn (Jan 5, 2026) – The largest token burn to date is reducing supply amid growing demand.
- Technical Breakout Confirmed (Jan 9, 2026) – POL’s price jumped 49% in one week, showing strong buying signals.
Deep Dive
1. Open Money Stack Launch (Jan 10, 2026)
What happened: Polygon introduced the Open Money Stack, a flexible system designed to handle stablecoin payments and cross-chain transactions worldwide. This system aims to bring regulated financial services directly into Polygon’s network, with POL as the core token. CEO Sandeep Nailwal described it as a way to “redefine money movement for the next three decades.”
Why it matters: This development is positive for POL because it expands its use beyond decentralized finance (DeFi) and NFTs into mainstream financial services. Partnerships with companies like Stripe and Revolut (source: CoinGape) could increase transaction volume and token burns through fees. However, competition from other Ethereum Layer 2 solutions means execution will be key.
2. Record 3 Million POL Burn (Jan 5, 2026)
What happened: Polygon’s network activity led to burning 3.02 million POL tokens (worth about $532,000 at current prices), marking the largest single-day burn since the switch from MATIC to POL. On average, 1 million POL tokens are now burned daily, thanks to increased use of AggLayer and Polymarket’s prediction platform.
Why it matters: This faster token burn rate (about 3.5% annually) helps offset the 2% inflation from staking rewards. With 34% of POL tokens already staked (source: CoinMarketCap), less selling pressure could support higher prices if demand continues.
3. Technical Breakout Confirmed (Jan 9, 2026)
What happened: POL broke through a key resistance level at $0.16, rising 49% over seven days. The short-term price chart shows higher highs and lows, with the Relative Strength Index (RSI) at 79, indicating the token is overbought but not yet showing signs of reversal. The MACD indicator also points to strong momentum.
Why it matters: While this breakout looks strong, traders are watching the $0.20 level as the next major resistance. A 67% increase in 24-hour trading volume (source: CryptoPotato) suggests retail investors are jumping in, which could lead to price swings.
Conclusion
Polygon’s recent price rally is driven by real improvements like the Open Money Stack, aggressive token burns, and strong technical signals. The 45% gain over 30 days shows confidence, but the overbought RSI and the $0.20 price barrier mean caution is advised. The key question is whether Polygon can turn this momentum into lasting adoption through its new payment system or if profit-taking will cause a pullback. Keep an eye on token burn rates and AggLayer transaction data for signs of what’s next.
What is expected in the development of POL?
Polygon’s roadmap is focused on improving its infrastructure to handle more transactions, expanding its ability to work across different blockchains, and fine-tuning the economics of its token, POL. Here are the key upcoming milestones:
- AggLayer v0.3 Launch (January 2026) – This update will unify liquidity and fee systems across Polygon’s rollups, making cross-chain transactions smoother without needing bridges.
- Gigagas Throughput Milestone (2026) – Aiming to process 100,000 transactions per second (TPS) to support global payments.
- POL Staking Hub Expansion (2025) – Validators will earn rewards across multiple chains, with staking benefits and eligibility for airdrops.
- Open Money Stack Rollout (2026) – Introducing a framework for regulated stablecoin transfers and payment rails suitable for institutions.
Deep Dive
1. AggLayer v0.3 Launch (January 2026)
What it is:
AggLayer v0.3 will connect liquidity and transaction states across Polygon’s rollups, allowing users to move assets and data seamlessly between chains without relying on bridges. This follows the Madhugiri upgrade in December 2025, which increased transaction capacity by 33%.
Why it matters:
- Positive: Reduces fragmentation in the ecosystem, making it more attractive for large decentralized applications (dApps) like Polymarket, which handles over $40 billion in volume.
- Potential challenge: Success depends on how well competing Layer 2 solutions like Arbitrum continue to perform.
2. Gigagas Roadmap (2026)
What it is:
Polygon plans to reach 100,000 TPS by using lightweight nodes and faster transaction finality. Recent test networks have already hit 5,000 TPS, with mainnet upgrades expected by mid-2026.
Why it matters:
- Positive: This high throughput could make POL a key player for small payments and automated transactions involving AI agents.
- Potential challenge: The network needs active developers and users to fully utilize this capacity.
3. POL Staking Hub (2025)
What it is:
Validators who stake POL will help secure multiple blockchains, including Proof-of-Stake and zkEVM chains, earning fees from AggLayer transactions. A 2% yearly token emission supports staking rewards and community funds.
Why it matters:
- Positive: Encourages long-term holding of POL; currently, 3.6 billion POL tokens are locked in staking.
- Potential challenge: Inflation concerns exist if token burns don’t balance out the new tokens issued for staking rewards.
4. Open Money Stack (2026)
What it is:
A modular system designed to handle regulated stablecoin transfers and connect with traditional fiat currency on/off-ramps. Polygon is rumored to be acquiring Coinme for $100–125 million, which would add over 6,000 Bitcoin ATMs to its network.
Why it matters:
- Positive: Targets institutional payment systems and has already seen POL token burns reach 3 million daily in January 2026.
- Potential challenge: Regulatory issues could arise, especially around cross-border payments.
Conclusion
Polygon is shifting from focusing mainly on decentralized finance (DeFi) to becoming a global platform for payments and real-world asset settlements. While upgrades like AggLayer and Gigagas aim to solve scalability issues, the success of POL depends on balancing token inflation with actual demand—such as through token burns that currently reach about 3.5% annually. The key question for 2026 is: Will POL’s deflationary mechanisms outpace its staking emissions? Keep an eye on weekly token burn rates and the share of transactions on AggLayer for early signs.
What updates are there in the POL code base?
Polygon’s technology is evolving to handle real-world, large-scale use with three major updates:
- Madhugiri Hard Fork (Dec 9, 2025) – Boosts transaction speed by 33% and finalizes blocks in 1 second.
- Heimdall v2 Upgrade (July 10, 2025) – Speeds up network agreement and cleans up old code.
- MATIC→POL Migration (Sept 4, 2024) – Unifies the token system to support Polygon’s AggLayer scaling.
Deep Dive
1. Madhugiri Hard Fork (Dec 9, 2025)
What happened: Polygon cut the time it takes to confirm transactions from 2 seconds to just 1 second and increased how many transactions it can handle by 33%. This upgrade focuses on supporting stablecoins and real-world assets (RWAs).
It also introduced new Ethereum Fusaka standards (EIPs 7823, 7825, 7883) that limit how much computing power any one transaction can use, preventing any single user from slowing down the network. Plus, a new transaction type was added to improve traffic between Ethereum and Polygon.
Why it matters: Faster and cheaper transactions make Polygon more attractive for global payments and big institutions. This is a positive sign for POL’s future. (Cointelegraph)
2. Heimdall v2 Upgrade (July 10, 2025)
What happened: Polygon updated its consensus system—the process that helps the network agree on transactions—from an older version (Tendermint/Cosmos-SDK v0.37) to a newer one (CometBFT/Cosmos-SDK v0.50). This reduced the time to finalize transactions to about 5 seconds.
The upgrade removed outdated code, improved how validators sync with the network, and prepared the system for future zero-knowledge Ethereum Virtual Machine (zkEVM) features. During the 3-hour upgrade, developers were advised to wait for 256 confirmations to ensure security.
Why it matters: This update modernizes Polygon’s infrastructure, making it more reliable and ready for enterprise use cases like regulated assets. While there were some technical risks, overall it’s a positive step for POL. (CoinMarketCap)
3. MATIC→POL Migration (Sept 4, 2024)
What happened: Polygon completed most of its token migration, switching from MATIC to POL as the native token used for transaction fees and staking on the Polygon Proof-of-Stake network.
The swap was done 1:1 through the Polygon Portal, keeping compatibility with existing systems. POL’s tokenomics now split emissions evenly: 50% goes to validators as rewards, and 50% funds a community treasury.
Why it matters: This migration strengthens POL’s role in supporting Polygon’s AggLayer, which aims to scale across multiple blockchains. While there was some short-term selling pressure during the switch, the long-term outlook is positive. (Polygon Blog)
Conclusion
Polygon is focusing on scaling for real-world use (Madhugiri), improving security and modularity (Heimdall), and streamlining liquidity with POL (token migration). As AggLayer adoption grows, the big question is whether POL can outpace other Ethereum Layer 2 solutions in 2026.