Polygon (POL) Surges 22% in January 2026 as Fee Boom and Polymarket Activity Fuel On-Chain Demand
- Why Is Polygon (POL) Suddenly Up 22% This Month?
- Polygon’s Fee Revenue Just Hit a 14-Month High
- From NFT Graveyard to Prediction Market Powerhouse
- Stablecoins Keep Flowing Despite Crypto’s Volatility
- FAQ: Polygon’s 2026 Resurgence
Polygon’s native token POL is riding a bullish wave in early 2026, with a 22% monthly surge fueled by record fee burns and resurgent activity from prediction markets like Polymarket. The Layer 2 network just saw its highest daily token burn (3M POL) on January 5, while chain revenue hit $1.1M – levels not seen since November 2024. With daily transactions doubling to 5.3M and stablecoin flows exceeding $365M last quarter, Polygon is proving it’s more than just a 2021 Web3 relic. Here’s why traders are betting big on POL’s comeback story.
Why Is Polygon (POL) Suddenly Up 22% This Month?
POL’s price action tells a classic supply shock story. The token ripped past $0.15 after Polygon incinerated 3 million POL in a single day – the network’s biggest burn event ever. Like watching a DeFi black hole at work, increased on-chain activity automatically destroys more POL through its fee mechanism. With Polymarket bots now chewing through transactions (more on that later), the burn rate could keep accelerating. Open interest climbing to $51M suggests derivatives traders are taking notice too.
Polygon’s Fee Revenue Just Hit a 14-Month High
Follow the money: $1.1 million in weekly chain revenue doesn’t lie. That’s Polygon’s best performance since crypto winter 2024, per DeFi Llama data. The breakdown? A mix of POL burns and USDC payments from two key drivers:
- Polymarket mania: The prediction platform now holds $258M TVL, becoming Polygon’s liquidity hub
- Stablecoin highways: $2.9B in stable assets now flow through Polygon’s low-fee corridors
Funny enough, despite the traffic jam (5.3M daily tx vs. 2.8M in early 2025), gas fees still hover below $0.01. Guess those bot armies are efficient workers.
From NFT Graveyard to Prediction Market Powerhouse
Remember when Polygon was just a cheap NFT minting ground? 2026’s storyline flipped the script. Polymarket’s election betting and weather derivatives now dominate activity, while Polygon’s new "Open Money Stack" aims to reinvent global payments. As one developer tweeted: "The next three years will define how money moves for thirty." Ambitious? Sure. But with 1.4M daily active users (summer 2025 levels), the chain’s proving it can handle real financial traffic.
Stablecoins Keep Flowing Despite Crypto’s Volatility
Here’s a head-scratcher: While other chains saw stablecoin outflows, Polygon netted $365.8M in Q4 2025. Analysts at BTCC attribute this to two factors:
- Cheaper cross-border payments than traditional rails
- Liquidity bridges with Ethereum (still Polygon’s main funding source)
This isn’t 2021’s speculative frenzy – it’s actual financial utility. Though whether Polymarket counts as "utility" or sophisticated gambling is... debatable.
FAQ: Polygon’s 2026 Resurgence
What caused Polygon’s recent price surge?
POL’s 22% January rally stems from record token burns (3M POL burned Jan 5) and surging activity from Polymarket, which now holds $258M in TVL.
How high did Polygon’s fee revenue go?
Weekly chain revenue hit $1.1M – the highest since November 2024, per DeFi Llama metrics.
Is Polygon still dependent on Ethereum?
Yes and no. While ethereum remains its primary liquidity source, Polygon processed $365.8M in net stablecoin inflows last quarter independently.
Why are gas fees still low despite high activity?
Polygon’s scalability keeps fees under $0.01 even at 5.3M daily transactions. Polymarket’s bot-heavy activity is surprisingly efficient.
