POL (ex-MATIC) Bolstered by Deflationary Model and Open Money Stack Expansion

Polygon (POL) launched the Open Money Stack, a modular platform to facilitate stablecoin-based, instant, and cross-chain money transfers according to Polygon's announcement.

The Open Money Stack aims to unify liquidity orchestration, compliance, and on-chain yield mechanisms into one system, supporting global fintech and institutional adoption.

Polygon is acquiring a Bitcoin ATM provider for between $100 million and $125 million, aiming to expand physical access to cryptocurrency.

Polygon's migration to the POL token has unified staking, governance, and network security, reinforcing its position as a leading Ethereum scaling solution. The token burn program, allocating 20% of quarterly net inflows, has created an annualized deflationary impact of ~3.5% of total supply. This has led to increased token scarcity and potential price appreciation.

Polygon's network saw 1.4 billion transactions in 2025 and has seen consistent daily token burns, stabilizing its price and reducing supply. Daily transaction volume remains above 5 million, with occasional spikes to 7 million, and weekly active addresses have stabilized above 15 million.

Polygon's TVL in DeFi rose to $1.199 billion by early 2026, driven by platforms like QuickSwap and Polymarket. AggLayer, a key initiative, aims to unify liquidity across the L2 ecosystem.

Polygon's network is now processing over $322.2 million in crypto card volume through partnerships with Mastercard and Revolut. Consumer applications like Starbucks Odyssey and Reddit Avatars are contributing to steady transaction volume.

Polygon's deflationary model mirrors successful strategies in protocols like BNB and AVAX. If the 2% inflation rate is fully eliminated, it could transition to a net deflationary model.

Polygon's token economy is now infrastructure-focused, emphasizing long-term growth over short-term volatility. Its valuation is mid-cap, but its robust infrastructure and governance model suggest potential for measured appreciation.

Market behavior indicates a stable upward trajectory. The 200-day moving average serves as a long-term reference, and the RSI oscillates around mid-50s, showing balanced demand.

Polygon is positioning itself for broader adoption, including institutional and consumer applications. If the broader crypto market enters a bull cycle, POL could see significant price gains.

Key risks include regulatory uncertainty and competition from other Layer 2 solutions. Analysts suggest investors monitor tokenomics reforms and roadmap execution to gauge future performance.