Polygon Shifts to POL Token: Migration and MATIC Analysis

Polygon 2.0 Upgrade: MATIC Migrates to POL on Sept 4th

On September 4th, 2024, Polygon Labs will migrate the MATIC token with the new POL token as part of the Polygon 2.0 roadmap. This upgrade will make POL the native gas and staking token for Polygon’s main proof-of-stake chain and other blockchains within its network. 

MATIC holders on the Polygon PoS chain will see their tokens automatically convert to POL without any action required. However, those holding MATIC on Ethereum, Polygon zkEVM, or centralized exchanges will need to use the Polygon Portal Interface for migration. 

Self-custody wallet users, like those with MetaMask, must update their RPC settings and manually change the token symbol. Ledger wallet users need to manually transform their ERC20 MATIC tokens or use a centralized exchange for conversion. A testnet upgrade on July 17th, 2024, ensured a smooth transition by allowing users and developers to familiarize themselves with the new system.

Polygon Witnessed Surge In Active Addresses

Santiment's latest report highlights that Polygon has been experiencing a decline since the crypto market retracement began in March. However, a recent surge in on-chain activity suggests a potential MATIC recovery. Indicators such as increased active addresses and dormant coin movements often precede such reversals.

The number of active addresses has spiked to its second-highest level in 2024, with 3,369 MATIC addresses, and there has been a significant transfer of 69 billion MATIC tokens. This uptick is largely due to the rising adoption of decentralized applications (dApps) on the Polygon network and developers' growing interest in its scalable Layer-2 solution.

Moreover, the daily transaction volume on Polygon has repeatedly surpassed that of the main Ethereum network, reflecting a preference for Polygon's faster and more cost-effective transactions.

Will Polygon (MATIC) Bounce Back?

MATIC crypto price has been in a downtrend since March 2024, and in a bearish trend till then trading below the key exponential moving averages. Recently its price bounced back from a key support level of $0.3456 but failed to surpass the 50-day EMA level showcasing weakness on the technical chart.

Source: Tradingview

At the time of writing MATIC was trading at the level of $0.4245 with an intraday loss of 0.14% with 24-hour trading volume of 279.84 Million. At press time its market cap stands at 4.25 Billion with a circulating supply of 9.99 Billion.

Year to date MATIC was down by almost 56.19% showcasing a prolonged bearish trend that resumed till now. Moreover, It was down by almost 38.74% in the last 3 months and 20.11% last week suggesting bear dominance.

According to a technical summary of Trading-view out of 26 indicators, 15 are indicating a sell signal, 10 are neutral and 1 on the buy-side suggesting bearish momentum in MATIC price.

However, recent developments in Polygon and the Surge In Active Addresses hint at a potential bounce back for the polygon price. If MATIC price rebounds it may reach the $1 mark shortly.

Conclusion

On September 4th, 2024, Polygon's MATIC token will migrate to the new POL token which is part of the Polygon 2.0 upgrade. Furthermore, the network has seen a surge in active addresses and on-chain activity suggesting increased adoption of the network. Despite, these developments MATIC price was in a prolonged downtrend. However, the recent rise in network engagement could indicate a potential rebound.

Also Read: Why is Bitcoin Going Down Today: Reason for Bitcoin Falling