Polygon Hits S-Curve Phase as Daily POL Burns Accelerate and Staking Supply Tightens

** Polygon records daily burns of nearly 1 million POL from base fees, while 3.6 billion POL remains staked across the network.**

Polygon is drawing renewed market attention as on-chain fee activity rises sharply across the network.

Data shows sustained daily token burns and steady staking participation. These developments signal a shift in supply dynamics for Polygon.

The update follows public network metrics shared by Polygon leadership. Market analysts are closely watching usage-driven supply changes across 2026.

Rising Base Fees Drive Consistent Daily Polygon Burns

Polygon has recorded a sharp increase in base fee activity across recent days. Network data shows around one million POL burned daily through base fees.

This burn activity has continued consistently over a three to four-day period. The increase reflects higher transaction usage across Polygon-supported applications.

Polygon chain is having its S curve moment on the fees generated.

1. Last 3-4 days every day 1mn POL is getting burned in base fees. To put it in perspective, continued for the whole year, 3.5% of POL’s total supply will get burned

2. This makes POL massively deflationary

3.…

— Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) January 5, 2026

If the current burn pace continues, annual supply reduction becomes measurable.

Estimates show up to 3.5% of the total POL supply is burned yearly. This figure depends on stable transaction volumes and fee generation.

The burn mechanism operates automatically through the network fee model.

The base fee system removes POL from circulation permanently. Each transaction contributes directly to the burn process.

As network usage grows, burn volumes scale accordingly. This model links supply reduction directly to on-chain demand.

Higher transaction counts have supported this recent trend. Polygon processed increased activity across payments and decentralized services.

Fee generation reflects real usage rather than speculative transfers. Sustained activity remains the main factor for continued burns.

Staked Polygon Supply Remains Locked Amid Burn Acceleration

While burns increase, a large share of POL remains staked. Current data shows around 3.6 billion POL locked in staking contracts.

These tokens are unavailable for trading while supporting network security. Staking participation has remained stable during recent market periods.

Validators and stakers earn rewards for securing the network. Combined rewards currently average about 1.5% annually. This reward rate is lower than the projected annual burn rate. The difference affects net supply growth over time.

Staked tokens reduce the circulating supply available on exchanges. This tightening occurs alongside ongoing base fee burns.

Both factors contribute to a lower effective circulating supply. Supply dynamics now depend on usage rather than issuance growth.

The staking model continues unchanged despite higher burns. Reward distribution follows predefined network rules. No changes to validator incentives have been announced. Staking remains a core component of Polygon’s consensus system.

Related Reading: Polygon Sets New ATH in Stablecoin Active Wallets to Close 2025

Network Usage Links Fee Growth and Supply Trends in 2026

Polygon leadership has linked fee growth to broader network adoption. Increased activity reflects usage across payments, DeFi, and infrastructure tools.

Fee-based burns scale with transaction demand across these sectors.

This structure ties supply trends directly to network engagement. As of the time of this writing, Polygon’s price was at $0.1265, reflecting a 5.87% rise over the last 24 hours.

Recent data shows strong transaction counts across the network.

Active addresses and application usage have risen month over month. These metrics support sustained fee generation.

Higher usage increases base fees and corresponding burns.

Staking participation remains important for network stability. Additionally, locked tokens continue securing transactions and validating blocks.

This balance supports consistent network performance. Supply tightening occurs without reducing validator participation.

The outlook for 2026 depends on continued usage levels. Fee growth relies on application demand and integration activity.

Supply changes remain tied to measurable network data. Market analysts are monitoring whether current trends persist.