3 Altcoins To Watch In The Second Week of January 2026

Three altcoins are drawing investor attention in the second week of January 2026, driven by regulatory developments, technological upgrades, and market positioning. Polygon (POL) is benefiting from a new stablecoin framework, while MANTRA is preparing for a major coin migration and redenomination. Investors are also watching for signs of market consolidation and recovery in smaller altcoins.

The altcoin market remains mixed, with some projects showing signs of long-term resilience while others face short-term challenges. POL has risen 13% in the past 24 hours following Polygon Labs' announcement of the Open Money Stack, a framework designed to facilitate instant, global stablecoin payments. This development is expected to enhance Polygon's role in the DeFi ecosystem.

MANTRA's native token, $OM, faces key inflection points in early 2026. The token is set to migrate from the ERC-20 standard to the MANTRA Chain, with a 1:4 redenomination scheduled for March 2. Holders are urged to migrate their tokens before January 15 to avoid deprecation. This transition could impact liquidity and investor sentiment in the short term.

Why Did This Happen?

Polygon's price increase is tied to the launch of the Open Money Stack, which aims to streamline cross-chain stablecoin transactions and improve regulatory compliance. The framework builds on growing stablecoin adoption and regulatory clarity in the U.S., including the Genius Act passed in July 2025.

Polygon has also seen a surge in stablecoin volume, reaching a three-year high of $3.3 billion on its network. This growth supports the company's vision of creating an on-chain payment infrastructure that rivals traditional financial systems.

Analysts are closely monitoring the migration of $OM to MANTRA Chain. The success of this transition will determine whether the token can maintain its market position amid technical challenges. Historical token migrations have seen volatility surges, and $OM is no exception.

The migration deadline of January 15 is a critical date for OM holders. Those holding tokens on non-MANTRA chains risk losing access to the redenomination benefits. The community has seen mixed participation so far, with around 30% of tokens still unmigrated as of December 2025.

Polygon's technical indicators suggest continued upward momentum, with the POL token trading above key moving averages and Fibonacci levels. The Average Directional Index remains above 50, indicating a strengthening bullish trend. A break above $0.20 could confirm a new phase of growth.

Market participants are also watching broader trends in stablecoin adoption and infrastructure development. With 30% of all on-chain volume now driven by stablecoins, platforms like Polygon are expected to play a growing role in the global financial system.

Investors are advised to consider both the technical and regulatory factors shaping these projects. MANTRA's RWA (Real-World Asset) initiatives and Dubai VARA license may provide a unique edge in 2026, but token migration risks remain a near-term concern.

Polygon's Open Money Stack is expected to face competition from other stablecoin platforms, including Klarna's Tempo and Visa's USDC initiatives. However, Polygon's regulatory alignment and network adoption give it a competitive advantage.

What Is the Investor Outlook?

Investors in altcoins are advised to focus on key milestones and technical indicators. For $OM, the migration and redenomination represent both a risk and an opportunity. For POL, continued regulatory progress and stablecoin growth could drive long-term gains.

Market sentiment for altcoins remains cautious, with the Altcoin Season Index at 32/100. However, projects with clear use cases and regulatory alignment are expected to outperform. MANTRA's RWA initiatives and Polygon's infrastructure upgrades position them well for 2026.