What is expected in the development of POL?
Polygon’s plan focuses on improving payment speeds, connecting different blockchains smoothly, and updating its token system.
- Gigagas Roadmap (2026) – Aiming for 100,000 transactions per second (TPS) to support global payments and real-world asset (RWA) infrastructure.
- AggLayer Full Maturity (2026) – Enabling institutional real-world asset flows and integrating consumer apps.
- POL Economics Shift (2026) – Introducing staking-driven token burning and governance improvements.
Deep Dive
1. Gigagas Roadmap (2026)
Overview: Polygon is working to reach 100,000 TPS by optimizing validators and integrating AggLayer technology. Recent updates like Madhugiri (December 2025) increased transaction speed by 33%, reaching about 1,400 TPS, with test networks hitting 5,000 TPS. The 2026 goal is to make Polygon’s network as fast as Visa, supporting small payments, AI applications, and Internet of Things (IoT) devices.
What this means: This is positive for POL because faster transactions could attract businesses to use Polygon for payments and managing real-world assets, which would increase transaction fees and token burns. However, there is a risk of delays or not attracting enough high-volume users beyond current projects like Polymarket (Lajay99).
2. AggLayer Full Maturity (2026)
Overview: AggLayer version 0.3, launched in January 2026, connects liquidity across different Polygon chains without needing bridges. The focus for 2026 is to support cross-chain settlements for tokenized bonds and institutional real-world assets, while making the user experience simpler for everyday apps.
What this means: This is somewhat positive—smooth interoperability could encourage more developers to build on Polygon and increase POL’s use as a settlement layer. Still, competition from Ethereum Layer 2 solutions like Arbitrum might limit AggLayer’s market share (Nicat053nn).
3. POL Economics Shift (2026)
Overview: Currently, about 1 million POL tokens are burned daily, which is more than the 1.5% annual increase from staking rewards. Proposed governance changes aim to use treasury funds for token buybacks to help reduce inflation.
What this means: This is positive if the token burning and buybacks continue to reduce the overall supply of POL. However, there is a risk that validators might sell their tokens if staking rewards drop, which could put downward pressure on the price (Lajay99).
Conclusion
Polygon’s 2026 roadmap focuses on building infrastructure for fast global payments and real-world assets. The value of POL depends on how well AggLayer is adopted and how effective the deflationary token mechanics are. If Polygon can sustain high token burns and reach its 100,000 TPS goal, POL could become one of the top 10 cryptocurrencies by practical use.
What updates are there in the POL code base?
Polygon’s latest updates focus on making different blockchains work better together, giving users more flexible staking options, and completing important system upgrades.
- Liquid Staking Upgrade (Jan 14, 2026) – Introduces ERC-20 dPOL tokens, making it easier to use staked POL in decentralized finance (DeFi).
- Heimdall v2 Mainnet Launch (Jul 10, 2025) – Speeds up transaction finality and improves the network’s core technology.
- AggLayer Expansion (Q4 2025) – Enables smoother cross-chain transactions and merges liquidity across Layer 2 networks.
Deep Dive
1. Liquid Staking Upgrade (January 14, 2026)
What’s new: With PIP-69, staked POL tokens are now represented as ERC-20 dPOL tokens. This means users can trade or use their staked tokens in DeFi apps like lending platforms or automated market makers (AMMs) without giving up their staking rewards.
In your wallet, you’ll see tokens like dPOL, dPOL1, or dPOLa4, each backed 1:1 by your staked POL.
Why it matters: This upgrade makes staking more flexible and attractive, as users can earn rewards while still using their tokens in other financial activities. It could increase demand for POL, especially from investors looking for liquidity. (Source)
2. Heimdall v2 Mainnet Launch (July 10, 2025)
What’s new: Polygon upgraded its consensus layer—the system that helps validate and confirm transactions—from an older version (Tendermint/Cosmos-SDK v0.37) to a newer one (CometBFT/Cosmos-SDK v0.50). This change cuts the time it takes to finalize transactions to about 5 seconds.
The update also simplifies the code, improves how nodes sync with the network, and adds better tracking of block proposals. It was tested on the Amoy testnet on June 24, 2025, and validators had to update their software before the upgrade.
Why it matters: This makes Polygon’s network faster and more secure, which is good for long-term growth. However, the immediate effect on POL’s price was limited due to overall market conditions. (Source)
3. AggLayer Expansion (December 2025)
What’s new: AggLayer is a new system that allows different Polygon zkEVM chains and other Layer 2 networks to work together more seamlessly. It enables “atomic” cross-chain transactions, meaning actions can happen across multiple blockchains at once without risk.
This technology combines liquidity pools and state data across chains, reducing fragmentation. Developers can now build smart contracts that interact with multiple networks easily using AggLayer’s zero-knowledge proofs.
Why it matters: This strengthens POL’s role as the key token in a connected multi-chain ecosystem, boosting its usefulness and value over time. (Source)
Conclusion
Polygon’s recent upgrades focus on making blockchains more interoperable (AggLayer), improving capital efficiency for stakers (dPOL), and enhancing network performance (Heimdall v2). These changes support Polygon’s goal to become a foundational “value layer” for the internet. The big question remains: will faster cross-chain adoption help Polygon compete with Ethereum’s own scaling solutions?
Why did the price of POL fall?
Polygon (POL) dropped 3.27% in the last 24 hours, underperforming the overall crypto market, which fell just 0.18%. This adds to a 6.61% decline over the past week. The main reasons behind this drop are:
- Strategic Shift & Job Cuts – Polygon laid off 30% of its staff and invested $250 million in acquisitions to focus on regulated payment services, raising concerns about its future value.
- Ransomware Exploit Reports – News surfaced that a ransomware group used Polygon’s smart contracts to avoid detection, hurting market confidence.
- Technical Weakness – The price fell below a key support level, suggesting more downward pressure ahead.
1. Strategic Shift & Job Cuts (Negative Impact)
What happened: Polygon Labs announced it would reduce its workforce by about 30% (roughly 90 to 120 jobs) and spent $250 million to acquire Coinme (a regulated payments company) and Sequence (a wallet infrastructure provider). This marks a shift from being a general Layer 2 blockchain focused on scalability to becoming a regulated platform centered on stablecoin payments. Earlier in 2024, Polygon had already cut 19% of its staff and spun off some non-core projects.
Why it matters: This sudden change in direction, moving away from competing with other blockchains like Base and Arbitrum on speed and scalability, has made investors worried about Polygon’s growth potential and the value of its token. As a result, many are selling POL, adjusting its price from a “tech growth” asset to a more modest “utility” token.
What to watch: Keep an eye on how many users adopt Polygon’s new Open Money Stack and any updates on U.S. regulations around stablecoin payments.
2. Ransomware Exploit Reports (Negative Impact)
What happened: On January 16, security firm Group-IB revealed that the DeadLock ransomware group has been using Polygon smart contracts since mid-2025 to store proxy server addresses. This allows them to switch their command-and-control servers and avoid being shut down.
Why it matters: Although this isn’t a flaw in Polygon’s technology, the fact that criminals are using its public blockchain for illegal activities could lead to increased regulatory scrutiny and reduce trust from institutional investors concerned about compliance.
What to watch: Look for how the Polygon Foundation responds to stop this misuse and any new regulations targeting blockchain privacy features.
3. Technical Weakness (Negative Impact)
What happened: POL’s price fell below the important $0.14 support level, pushing further down to around $0.138. The daily Relative Strength Index (RSI) is neutral at 50.32, but the Chaikin Money Flow indicator shows money flowing out of the asset.
Why it matters: This price drop signals weakening buyer interest after a strong 46% rally last month. Low trading volume is making the price more volatile. If POL closes below $0.138, it could trigger stop-loss orders and push the price down to $0.12.
What to watch: Watch for POL to climb back above $0.15 to reverse the bearish trend, or for increased token transfers to exchanges, which might indicate more selling pressure.
Conclusion
Polygon’s recent restructuring and negative news have overshadowed its long-term goal of building a regulated payments platform, leading to profit-taking and a technical price breakdown. Key question: Will POL hold above $0.138 in the next 24 hours amid cautious market sentiment?
What could affect the price of POL?
Polygon’s shift toward payment solutions and network upgrades could fuel growth, but regulatory challenges and strong competition remain concerns.
- Focus on Payments: With $250 million in acquisitions, Polygon is building regulated stablecoin payment systems, changing POL’s role from a tech-focused token to a utility token.
- Network Improvements: The upcoming AggLayer update and a plan to reach 100,000 transactions per second (TPS) could increase adoption if executed well.
- Token Supply and Sentiment: Higher fees and token burns may reduce supply, but market confidence is still fragile.
In-Depth Analysis
1. Strategic Shift to Payments (Mixed Outlook)
Overview:
Polygon Labs is moving away from general Layer 2 scaling solutions to focus on regulated stablecoin payments. This shift is backed by $250 million in acquisitions, including Coinme (which provides licensed fiat on-ramps) and Sequence (wallet technology). The goal is to create an integrated payment system that supports real-world transactions like remittances and enterprise payments. However, this comes with a 30% reduction in staff and changes how POL is valued—from a technology asset to a utility token. The new “Open Money Stack” aims to meet U.S. regulatory standards by mid-2026.
What this means:
In the short term, investors may be cautious due to uncertainty about the new business model and potential dilution from acquisition costs. Over the long term, if Polygon successfully captures payment volume—already growing with stablecoin transactions up 49% quarter-over-quarter to $1.82 billion—it could see strong growth. Success depends on partnerships with major players like Stripe and Mastercard to use its payment infrastructure.
Sources: CoinMarketCap, Coinspeaker
2. Network Upgrades and Competition (Positive Outlook)
Overview:
Polygon plans to launch AggLayer v0.3 in early 2026, which will combine liquidity across its networks. The “Gigagas” roadmap aims to reach 100,000 TPS by optimizing validators. A recent upgrade, the Madhugiri hard fork, already increased throughput by 33%, supporting high-volume platforms like Polymarket, which handles $2.59 billion monthly. However, competitors like Base and Arbitrum currently lead in decentralized finance (DeFi) total value locked (TVL), and Ethereum’s own scalability improvements could reduce demand for Layer 2 solutions.
What this means:
If Polygon delivers on these upgrades, it could become a top choice for high-volume applications such as payments and real-world assets, increasing demand for POL tokens used for transaction fees and staking. Failure to execute quickly could let competitors take the lead. Key milestones, like reaching 5,000 TPS by mid-2026, will be important for driving token value.
Sources: Binance News, CoinMarketCap
3. Tokenomics and Market Sentiment (Mixed Outlook)
Overview:
Polygon’s token burn rate has reached 1.4 million POL per day (about $392,000 in fees), which could make the token deflationary if this continues. Active user addresses increased 15% to 14.7 million in January 2026, but some indicators like Chaikin Money Flow suggest money is flowing out. Market sentiment is divided: retail investors are optimistic, but technical analysis shows resistance at $0.155 per token.
What this means:
If token burns continue to outpace the 1% annual inflation from staking rewards, POL’s supply could tighten, potentially supporting price increases if payment volume grows. However, the token price remains sensitive to overall altcoin market trends and recently dropped 6% in a week. Breaking through the $0.155 resistance level will be important for positive momentum.
Sources: Crypto.news, Market Prophit
Conclusion
Polygon’s bold move into regulated payments and network scaling could unlock significant real-world use cases, but it faces risks from execution challenges and tough competition in the Layer 2 space. Watching the adoption of AggLayer and integration with Coinme will be key to seeing if POL can evolve from a speculative asset into a core payment infrastructure token. The big question remains: can Polygon hit 5,000 TPS before competitors dominate the micro-payments market?
What are people saying about POL?
Polygon’s $POL token is facing a tug-of-war between token burns and selling pressure. Here’s the latest:
- Record token burns of over 3 million daily are happening alongside alerts of large holders selling 🚨
- Shift toward regulated payments with $250 million acquisitions of Coinme and Sequence 🌐
- Price struggles at $0.16 resistance after a 48% drop in the past week 📉
Deep Dive
1. @MarketProphit: Mixed signals from traders and analysts
"CROWD = Bullish 🟩 / MP = Bearish 🟥" – January 13, 2026 (70.6K followers · 142K impressions)
What this means: Everyday investors are optimistic about Polygon’s growing adoption through its Open Money Stack platform. However, experts warn that momentum might be fading, with technical indicators showing overbought conditions and some holders who bought in the last 90 days starting to take profits, which could lead to more selling.
2. @CoinEdition: Potential breakout above $0.18 is bullish
"POL entered higher territory with expanding volume" – January 9, 2026 (10.5K followers · 38K impressions)
What this means: If Polygon’s price can stay above $0.16, it might trigger automated buying that could push the price toward $0.20 to $0.22. But if it fails to hold, the price could fall back to support levels between $0.12 and $0.14.
3. @Nazo_ku: Large whale selling pressure is bearish
"20M POL ($3.5M) ready for sale" – January 10, 2026 (10K followers · 89K impressions)
What this means: A single wallet holding about 0.2% of all circulating $POL is preparing to sell. If this happens, it could push the price down toward the $0.138 support level, especially since trading volumes are relatively low ($105 million in 24 hours), making the market more sensitive to big sales.
Conclusion
The outlook for $POL is mixed. On one hand, there are positive developments like network upgrades (AggLayer v0.4 with over 1,000 transactions per second) that could boost confidence. On the other hand, challenges like a 30% staff reduction and confusion around the MATIC rebrand are weighing on sentiment. Keep an eye on the $0.15 to $0.16 price range—breaking above $0.18 would support the bullish Open Money Stack story, while failing to do so might lead to revisiting last year’s lows. Polygon’s move into regulated stablecoin payment systems could reshape its role in the 2026 payments landscape.
What is the latest news about POL?
Polygon is making big moves to focus on payments while facing some security challenges. Here’s the latest:
- Shift to Payments (January 16, 2026) – Bought Coinme and Sequence for $250 million to create a U.S.-regulated stablecoin platform.
- Ransomware Issues (January 16, 2026) – The DeadLock ransomware group is using Polygon’s smart contracts to hide their activities.
- Network Growth (January 15, 2026) – Transaction fees and token burns are up, but the price remains unstable.
In-Depth Look
1. Shift to Payments (January 16, 2026)
What happened:
Polygon Labs is restructuring by cutting 30% of its staff and acquiring Coinme (a regulated crypto payments company) and Sequence (a wallet technology provider) for $250 million. This marks a shift from being a general Layer-2 blockchain solution to focusing on a fully integrated payments system that follows U.S. regulations.
Why it matters:
This move could increase the usefulness of POL for regulated cross-border payments and converting between crypto and regular money (fiat). However, investors reacted cautiously, causing a 6% drop in POL’s price as they consider the shift from technology growth to payments infrastructure. (CoinMarketCap)
2. Ransomware Issues (January 16, 2026)
What happened:
Security experts at Group-IB found that the DeadLock ransomware group is using Polygon’s public smart contracts to store proxy server addresses. This makes it very hard for authorities to shut down their operations.
Why it matters:
This isn’t a flaw in Polygon’s technology itself, but it shows the risks of blockchain’s open and public design. It’s neutral for POL’s long-term outlook but highlights the importance of stronger anti-abuse measures. (crypto.news)
3. Network Growth (January 15, 2026)
What happened:
Polygon’s transaction fees jumped 235% in the past month, reaching $2.64 million, with 3 million POL tokens burned daily. The number of active users grew to 14.7 million, helped by partnerships with Mastercard and Stripe.
Why it matters:
While these signs show strong network use and healthy token burning (which can support price), POL’s price dropped 15.6% this week. Technical indicators like Chaikin Money Flow suggest investors are pulling money out right now. (CoinMarketCap)
Conclusion
Polygon’s new focus on payments could change its place in the crypto world, but short-term price swings and security concerns remain. It’s worth watching if POL can hold its $0.138 support level and how it competes with other platforms like Base and Arbitrum.