As a seasoned crypto investor with a knack for spotting trends and understanding market dynamics, I find the recent developments surrounding Polygon (MATIC) quite intriguing. The network activity decline since March was indeed disheartening, but the bullish signals that Santiment’s data is indicating could be a game-changer.
Since the broader cryptocurrency market started retreating in March, there’s been a decrease in network transactions involving Polygon (MATIC).
On the other hand, fresh insights from the cryptocurrency analytics provider Santiment suggest a possible reversal in these tendencies.
Bullish Reversal for Polygon (MATIC)?
In just the last month, Polygon’s native token, MATIC, has dropped by more than 17% and is typically trading below $0.52. This downward trend has caused its current price to dip to $0.43. However, this potential decrease might present a chance for investors to acquire the asset at a relatively lower value.
According to its recent update on topic X, Santiment noticed an increase in dormant token transactions taking place on August 28th, which occurred around the time when the second-highest number of Polygon addresses engaged with the network this year was recorded.
Indeed, a grand total of 3,369 different addresses conducted transactions on the Polygon network, and on that very day, the Age Consumed metric peaked at an impressive 69 billion MATIC. These two indicators tend to signal upcoming changes in the market, often foreshadowing potential market reversals.
In other words, these indicators point towards a possible MATIC revival, which might signal the start of an anticipated upturn in the cryptocurrency’s price trend, as it appears to be breaking free from its extended period of decline.
The Migration: MATIC to POL
The Polygon network is gearing up for the transition from using MATIC to POL as its primary token, which is set for September 4th this year. This change will make POL responsible for transaction fees (gas) and staking within the Proof of Stake (PoS) chain of Polygon, marking a significant step in the Polygon 2.0 development plan that was announced last year.
Initially, the POL update was introduced on the testing network on July 17, aiming for a seamless migration. During this stage, the primary objective was to identify and resolve any possible problems. This enabled users and developers to familiarize themselves with the new setup prior to the mainnet update.
Users who hold MATIC tokens within the Proof-of-Stake (PoS) chain of Polygon can expect an effortless, automatic conversion to POL without needing to take any action themselves. On the other hand, those who possess MATIC tokens on Ethereum, the Polygon zkEVM, or centralized exchanges will be required to manually upgrade through a migration contract on Ethereum, as previously reported.
This week, Binance announced its support for this upcoming transition.
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2024-08-29 21:44