Polygon (POL) Surges 22% as Rising Fees and Polymarket Activity Revive Blockchain Demand in 2026

• Why Is Polygon (POL) Surging in 2026?
• How Did the POL Token Burn Impact Supply?
• What’s Driving Polygon’s Transaction Boom?
• Can Polygon Become a Global Payment Rail?
• What’s Next for Polygon in 2026?
• FAQs About Polygon’s 2026 Rally

Polygon (POL) has emerged as one of the top-performing cryptocurrencies this week, fueled by a resurgence in blockchain activity driven by higher transaction fees and booming demand on Polymarket. The token gained 22% over the past month, with its price nearing a one-month high of $0.15. This rally follows the burning of 3 million POL tokens on January 5—the largest single-day token burn in Polygon’s history—which tightened supply and boosted investor confidence. Meanwhile, daily transactions on the network have nearly doubled since early 2025, hitting 5.3 million, while fees hit a 14-month peak. Here’s a deep dive into Polygon’s revival and what it means for the future of this ethereum L2 giant.

Why Is Polygon (POL) Surging in 2026?

Polygon’s native token, POL, has been on a tear lately, climbing over 17.2% in just a few days. The rally comes as the network sees a spike in activity, particularly from Polymarket, a prediction market platform that has become Polygon’s most liquid app with $258 million in value locked. The increased demand for POL—used to pay transaction fees—has pushed daily revenues to levels not seen since November 2024. According to TokenTerminal, Polygon’s fees recently hit $1.1 million in a single week, signaling strong utility-driven demand.

How Did the POL Token Burn Impact Supply?

The January 5 burn of 3 million POL tokens was a game-changer. By permanently removing these tokens from circulation, Polygon effectively reduced supply while demand was rising—a classic recipe for price appreciation. Open interest in POL futures briefly spiked to $51 million, reflecting heightened trader speculation. "Token burns create artificial scarcity, and when paired with real demand, they can ignite rallies," noted a BTCC market analyst. Data from CoinMarketCap shows POL’s circulating supply has tightened, further supporting the price uptrend.

What’s Driving Polygon’s Transaction Boom?

Two words: Polymarket and stablecoins. The prediction platform has been a major traffic driver, with bot-heavy activity proving Polygon can handle high-volume automated trading without congestion. At the same time, Polygon remains a hub for stablecoin transfers, hosting over $2.9 billion in stable assets like USDC. The network’s low fees (often under $0.01 per transaction) make it ideal for high-frequency trading and microtransactions. DeFi Llama data shows Polygon’s app revenues have surged to multi-year highs, confirming the network’s resurgence.

Can Polygon Become a Global Payment Rail?

Polygon’s team isn’t just resting on its DeFi laurels—it’s eyeing a bigger prize: becoming a backbone for global money movement. The recently unveiled "Polygon Open Money Stack" aims to create a seamless, interoperable system for blockchain-based payments. "The next three years will define how money evolves," the team tweeted on January 8. Given Polygon’s existing infrastructure—it already processes billions in stablecoin transfers—this vision isn’t far-fetched. The network’s ability to attract capital inflows ($365.8 million in net deposits over three months) suggests strong market confidence.

What’s Next for Polygon in 2026?

While Polymarket’s growth has been a tailwind, Polygon’s long-term success hinges on diversification. The network must balance its role as a DeFi and gaming chain with its ambitions in payments. One thing’s certain: with fees rising, adoption growing, and POL’s utility expanding, Polygon is far from the "ghost chain" some called it in 2024. As one trader put it, "Polygon’s like a phoenix—every time folks count it out, it finds a new way to rise."

FAQs About Polygon’s 2026 Rally

Why did POL’s price surge recently?

POL’s 22% monthly gain was driven by increased network activity (especially from Polymarket), a record 3M token burn on January 5, and rising demand for transaction fee payments.

How high did Polygon’s fees go?

Weekly fees hit $1.1 million—the highest since November 2024—with daily transactions reaching 5.3 million, per TokenTerminal.

What role does Polymarket play?

Polymarket is now Polygon’s most liquid app ($258M TVL), driving significant bot traffic that the network handles efficiently at sub-$0.01 fees.

Is Polygon still an Ethereum L2?

Yes, but it’s evolving into a multi-chain hub, recently proposing the "Open Money Stack" for global payments while maintaining L2 interoperability.