<div id="readability-page-1"><p>The Polygon [POL] network saw a surge in onchain activity in the second week of January.</p><p>AMBCrypto reported that the record POL burn was due to “an all-time high for demand and single-day fees generated”.</p><p>The onchain metrics showed that short-term holders back then were in profit, and given the higher timeframe price trend of POL, this represented a threat from profit-taking pressure.</p><p>The $0.18-$0.20 area was highlighted as a potential supply zone. This has come to pass. At the time of writing, the Polygon token was trading at $0.1245, down 33.28% from the $0.1866 high it made on the 10th of January.</p><h2><strong>Decreased onchain activity reveals reduced POL demand</strong></h2><div id="attachment_564908"><p><img src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/Polygon-Santiment-Activity-scaled.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="2560" height="867" original-src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/Polygon-Santiment-Activity-scaled.png"/></p><p id="caption-attachment-564908">Source: Santiment</p></div><p>The daily Active Addresses metric saw a sharp spike in the second week of January, around the same time as POL’s price rally. Since then, the Active Address count has steadily declined.</p><p>Moreover, the Network Growth has also fallen over the past two weeks. The transaction count has also declined, coming back to December’s levels.</p><p>The developments of the past two weeks meant that the surge in onchain activity has not been sustainable. This could help explain the reduced demand for POL.</p><h2><strong>Holder behavior shows mixed signals</strong></h2><div id="attachment_564917"><p><img src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/Polygon-Dormant-Circulation-Santiment-scaled.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="2560" height="867" original-src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/Polygon-Dormant-Circulation-Santiment-scaled.png"/></p><p id="caption-attachment-564917">Source: Santiment</p></div><p>The Mean Coin Age and the 90-day Dormant Circulation moved dramatically during the POL rally earlier this month. This suggested short-term holders had taken profits during the bounce.</p><p>However, the 1-year Dormant Circulation hardly moved, showing long-term holder conviction remained steady. Since the 14th of January, the Mean Coin Age has begun to trend upward, once more signaling network-wide accumulation.</p><p>Capitulation from short-term holders was not seen either, as the 90-day Dormant Circulation remained quiet after the initial spike.</p><p>Traders and investors can keep an eye on the Dormant Circulation in the coming weeks to monitor the next wave of selling.</p><p>Overall, the slowing onchain activity was a concern. Another uptick in activity and demand for POL can drive the next rally. For now, traders and investors can keep an eye on the $0.12 support level.</p><hr/><h2>Final Thoughts</h2><ul><li><em>The early January Polygon price and onchain activity surge were not sustained in subsequent weeks.</em></li><li><em>Long-dormant tokens woke up during the recent rally, a sign of holders selling the bounce.</em></li></ul></div>

<p>The Polygon (POL) network experienced a surge in on-chain activity in early January, leading to a record POL burn. However, demand has since faded, with POL trading at $0.1245, down 33.28% from its January high. Key metrics indicate a decline in daily active addresses and network growth, suggesting unsustainable activity. While short-term holders took profits, long-term holders remained steady. Traders should monitor the $0.12 support level and dormant circulation for potential selling signals. Overall, the initial price surge and activity were not maintained in the following weeks.</p>

- The Polygon network experienced a spike in onchain activity in early January, driven by high demand and fees, but this surge proved unsustainable.  
- Since then, onchain metrics such as Active Addresses and transaction counts have declined, indicating reduced demand for POL, with the token price falling to $0.1245.  
- Holder behavior shows mixed signals, as while short-term holders realized profits, long-term holder conviction remained steady, suggesting potential for future price movements.

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