Polygon burned 107M POL this year and still got ghosted by the chart 📉

Polygon has burned more than 107 million POL tokens in 2026 even as the network minted over 105 million POL over the same period, founder and CEO Sandeep Nailwal said on X, declaring the chain "officially net deflationary this year." The burns were sourced from base fees collected on the network, leaving circulating supply slightly reduced. In the same window, Ethereum, Solana, and Sui Network each added hundreds of millions of dollars worth of new tokens to their respective markets.

On-chain activity has continued to climb. Polygon recorded the highest stablecoin volume among payment networks in May, logging 198 million transactions, with fees elevated by the surge in payment-related usage. Whale positioning has also remained active. One wallet migrated 17.512 million MATIC into 17.512 million POL, valued at $1.25 million, while a multisig wallet linked to Stader Labs and Polygon staked 11 million POL worth $839,410, bringing its cumulative staking to more than 28 million POL.

Market data tells a different story. POL broke below a support level at $0.07161 in the past 24 hours, declining more than 1% to trade near $0.06948. The weekly chart shows a triangle consolidation that is nearing a resolution point, with sellers dominant since October 2025. The Bull Bear Power indicator sits in negative territory, and the Cumulative Volume Delta shows roughly 670,000 POL offloaded onto exchanges, signaling persistent sell-side pressure.

The split between on-chain usage and price action places Polygon in a familiar position for the cycle: deflationary token mechanics, rising transaction throughput, and staking accumulation running against a technically weak chart dominated by sellers.