Polygon: Will POL’s Price Rebound in 2026 After Deflation and Network Growth?

Though Polygon (POL) experienced little price movement in 2025, its network saw significant growth, leading to optimism for 2026. With an increase in fee generation and token burns, Polygon aims to create deflationary pressure that could positively impact POL's price. Additionally, the network registered a record 1.4 billion transactions, indicating rising user engagement. As the year unfolds, market watchers are keenly observing how these factors will influence POL's price trajectory.

Key Takeaways

Limited Price Gains: Despite widespread market growth in 2025, POL saw minimal price increases.
Deflationary Strategy: Polygon's fee generation has led to substantial token burns, introducing deflationary pressures on POL.
Transaction Surge: Polygon achieved a record 1.4 billion transactions in 2025, showcasing increased adoption and engagement.
Positive Price Momentum: POL kicked off 2026 with a notable price increase, marking potential for upward movement.
Resistance Levels: For POL to continue rising, it must surpass key resistance levels, especially at $0.17.

Polygon: Will POL's Price Rebound in 2026?

Could 2026 Be Polygon’s Year of Recovery?

Polygon’s CEO, Sandeep Nailwal, recently stated that the network is progressing along its growth curve, primarily driven by increased fee generation.

According to him, the network has seen a remarkable rise in fees, leading to significant token burns. Over the last few days, approximately 1 million POL tokens were burned daily, resulting from the fees collected on the network.

In the last three months alone, the daily fees and overall revenue surged by an impressive 425%, reaching around $115,000, with most of these proceeds dedicated to burns.

Polygon fees and revenue Source: Artemis

Sandeep predicts that if this trend continues throughout the year, about 3.5% of POL’s entire supply could be burned. Such a burn rate creates significant deflationary pressure on POL, which is crucial for its growth potential. Typically, less inflation leads to greater price increases; historically, there has been a direct relationship between reduced circulation and price elevation. For instance, POL's price saw significant declines when inflation rose but has shown signs of recovery in 2026 as inflation has decreased.

Polygon stock to flow ratio Source: Santiment

Furthermore, around 3.6 billion POL tokens are staked, with stakers and validators earning a combined reward of 1.5% of POL, further elevating the asset's scarcity. If this model sustains, POL may experience considerable benefits throughout 2026.

Massive Growth in Transactions for Polygon

Beyond deflationary trends, Polygon’s usage and adoption have surged significantly. Official data indicates that Polygon recorded a staggering 1.4 billion transactions in 2025, signaling robust adoption.

POL transactions Source: Polygon on X

Daily transactions remained stable above 5 million, with occasional peaks reaching 7 million, and the transaction volume consistently surpassed 20 million.

Polygon transaction volume and addresses Source: Santiment

Crucially, the increase in transactions corresponded with a growing user base. Active addresses soared, stabilizing above 15 million weekly, while daily addresses fluctuated around 1 million with peaks at 700,000. When both active addresses and transactions rise together, it usually indicates heightened engagement with the network, reflecting an actual demand for the asset.

Will POL Reach New Heights in 2026?

After a downward trend in Q4 of 2024, POL began 2026 on a promising note, appreciating by 21% from $0.09 to $0.127 within the past week.

As of now, POL is trading at $0.126, reflecting a daily increase of 4.67%. This positive trend has carried over into the monthly performance, particularly following recovery from losses in December.

Consequently, the Stochastic Momentum Index for POL shifted from the negative zone, reaching 84, signaling strong upward momentum.

POL SMI Source: Trading View

With Polygon experiencing notable adoption rates amidst reduced inflation, the sustainability of its deflationary efforts could facilitate POL's positive trajectory throughout 2026.

Currently, the altcoin is confronting significant resistance at $0.17, as indicated by the Future Trend Channel. To reach this target, POL needs to first aim for $0.15 in the short term. However, should it falter in maintaining its momentum, a drop to $0.11 could occur before attempting another upward movement.

Conclusion

In summary, Polygon has the potential for a strong comeback in 2026, driven by increased adoption, effective deflationary strategies, and significant transaction growth. As we move further into the year, market observers will be closely watching how these elements influence POL's price developments.