POL Surges 51% in a Week as On-Chain Burn Activity Hits Record Levels
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Surge in On-Chain Burns: POL's price surged approximately 51% over the week, coinciding with a significant increase in on-chain token burns, where daily burn figures briefly approached the low-million range, indicating heightened network usage and fee consumption that effectively reduces supply and boosts market demand for POL.
- Shift in Supply Dynamics: POL's supply mechanism is transitioning from a fixed-schedule burn model to a usage-linked supply dynamic, as Polygon expands its infrastructure, allowing more applications to settle through Polygon environments, which directly drives fee burns, reducing sell pressure and increasing price sensitivity.
- Whale Activity Signals Positioning: Approximately 20 million POL tokens were transferred between Polygon-associated wallets and venues like Binance and GSR Markets, valued at around $3-4 million, indicating that these liquidity management activities reflect structured positioning by whale holders rather than outright distribution, enhancing market stability.
- Rising Market Sentiment: The 24-hour spot trading volume exceeded $650 million, with open interest rising over 50% day-over-day, indicating a surge in market participation, while negative funding rates briefly emerged, suggesting traders are cautiously positioning for volatility amidst strong price momentum.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
