Polygon

<p>Polygon’s native token, MATIC, has faced a challenging month, shedding approximately 15% of its value amid a broader downturn in the cryptocurrency market. Despite this decline, the Polygon network has experienced a surge in activity, reaching new yearly highs in network participation. This uptick in activity, however, has not translated into positive price movement for MATIC, which currently trades at $0.412.</p><h3 id="strong-polygon-network-activity-hits-yearly-highs-strong"><strong>Polygon Network Activity Hits Yearly Highs</strong></h3><p>Recent data from on-chain analytics platform Santiment revealed that the Polygon network saw a significant surge in active addresses following announcements regarding the migration of MATIC to the new POL tokens. The number of active addresses, which tracks the participation of wallets in transactions over a 24-hour period, spiked to over 4,200, marking the highest level of activity seen in over a year.</p><p>This surge represents a sharp departure from the previous downward trend in network activity, with daily active addresses dropping to below 1,500 just before the spike. The renewed interest appears to be directly linked to the upcoming token migration, indicating that Polygon’s community is gearing up for the transition to POL.</p><h3 id="strong-matic-struggles-despite-network-growth-strong"><strong>MATIC Struggles Despite Network Growth</strong></h3><p>Despite the increased activity on the network, MATIC’s price has struggled to gain momentum. At $0.412, the token is trading well below the $0.55 resistance level, which has been a significant barrier for bulls in recent weeks. The resistance is largely attributed to a concentration of holdings around this price level, where many investors are likely selling to realize profits, thereby exerting downward pressure on MATIC.</p><p>MATIC’s profitability is currently among the lowest in the cryptocurrency market, with less than 5% of holders in profit. This is a stark contrast to other major cryptocurrencies, highlighting the challenges MATIC faces as it approaches the upcoming POL upgrade.</p><h3 id="strong-pol-upgrade-a-new-dawn-for-polygon-strong"><strong>POL Upgrade: A New Dawn for Polygon?</strong></h3><p>Scheduled for September 4, 2024, the migration from MATIC to POL is a pivotal moment for Polygon as it transitions to its broader vision known as the “AggLayer.” This upgrade aims to transform Polygon from a single proof-of-stake (PoS) network into an ecosystem of multiple zero-knowledge (ZK) technology-powered blockchains, secured by a common validator set.</p><p>The new POL token will replace MATIC on a 1:1 basis and become the gas fee payment and staking token of the Polygon PoS blockchain. POL is designed to expand token utility, increase validator incentives, and support multiple chains within the AggLayer. This upgrade is seen as a critical step in Polygon’s evolution, with the potential to address key issues plaguing the crypto industry, such as blockchain fragmentation and user experience challenges.</p><h3 id="strong-market-outlook-can-matic-rebound-strong"><strong>Market Outlook: Can MATIC Rebound?</strong></h3><p>With the POL upgrade on the horizon, analysts are divided on MATIC’s near-term prospects. The token is currently forming an ascending triangle pattern, which could indicate potential bullish momentum if the price breaks above the $0.4348 resistance level. However, the overall trend remains bearish, with MATIC trading below both the 50-day and 200-day EMAs.</p><p>If MATIC manages to break through its current resistance levels, a trend reversal could catapult the token to higher price targets, with $0.5047 and $0.6000 being key levels to watch. On the other hand, failure to maintain support around $0.4150 could lead to further declines, with $0.4000 as the next major support level.</p><h3 id="strong-conclusion-strong"><strong>Conclusion</strong></h3><p>Polygon’s upcoming POL upgrade presents a significant opportunity for the network to strengthen its position in the crypto space. However, the challenges facing MATIC’s price remain substantial, with the token struggling to break through key resistance levels despite a surge in network activity. As the September 4 deadline approaches, the crypto community will be closely watching to see if the POL upgrade can provide the boost MATIC needs to regain its footing and potentially spark a rally.</p><p><em><strong>Disclaimer:</strong> This article is intended for informational purposes only and should not be construed as legal, tax, investment, financial, or any other form of advice.</em></p><p></p><p><em>Souurce: </em><a href="https://icogemhunters.com/pol-upgrade-the-last-hope-for-matics-price-revival/" rel="noopener noreferrer nofollow">ICO GEM Hunters</a></p>

POL Upgrade: The Last Hope for MATIC’s Price Revival?

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