According to reports from AMBCrypto, Polygon has achieved significant network deflation despite facing price challenges. The network has burned over 107 million POL tokens in 2026 alone, as confirmed by founder and CEO Sandeep Nailwal. However, the altcoin's price has declined by more than 1% in the past 24 hours, trading at approximately $0.06948 after breaking below the support level at $0.07161. The price action contrasts sharply with the network's growing fundamentals and transaction volumes, with Polygon becoming net deflationary this year according to Nailwal's recent celebration on X. As per AMBCrypto, the altcoin has been in a consistent decline since the end of 2024, entering a consolidation phase in the form of a triangle pattern nearing a break point.
As reported by AMBCrypto, Polygon demonstrated robust network activity throughout 2026. The network recorded 198 million in stablecoin volume in May, marking the highest among all payment networks. Despite minting over 105 million POL tokens, the burned tokens from base fees resulted in a slightly reduced circulating supply. This deflationary pressure occurred while other major networks like Ethereum, Solana, and Sui Network added hundreds of millions of dollars worth of new tokens to the market. The high fees were coming from the spike in transactions as a payment protocol, with Polygon matching or even surpassing established networks like Solana in payment volume. According to AMBCrypto, the weekly chart shows sellers have been highly dominant since October 2025, with the Bull Bear Power indicator remaining red and the Cumulative Volume Delta showing selling pressure, indicating 670K POL have been offloaded into exchanges.
According to the report, significant whale activity and staking developments supported the network's fundamentals. A notable whale transaction involved 17.512 million MATIC being converted to 17.512 million POL worth $1.25 million, indicating continued confidence in the Polygon project. Additionally, a multisig wallet linked to Stader Labs and Polygon staked 11 million POL worth $839.41K, with the total wallet staking over 28 million POL tokens. This substantial staking activity helped reduce circulating supply and improve network security, with the whale migration showing that some major holders remain confident in the project's long-term prospects. As per AMBCrypto, the network has been enhancing its transaction and payment infrastructure, with CEO Sandeep Nailwal previously introducing Open Money Stack, a Polygon initiative aimed at enabling instant value transfers through a unified API at launch.
Despite the current price weakness, Polygon CEO Sandeep Nailwal suggests that the fundamentals are aligning strongly for the network. According to AMBCrypto, Nailwal previously urged the crypto community not to underestimate Polygon, suggesting that wider recognition could follow. The network processed a payment chain volume exceeding other blockchains in May, with 198 million transactions, demonstrating its leadership position in the payment protocol space. However, the altcoin continues to face technical challenges, with the weekly chart showing sellers have been highly dominant since October 2025 and the Bull Bear Power indicator remaining red. The current price action stalling due to technical weakness even though the network's transaction count and burn rates continue to grow, creating a disconnect between fundamental strength and price performance.
