Prepare for Polygon’s Biggest Move!

Polygon’s Recent Performance

After a year of flat performance and hitting a low of 38.5 cents about two weeks ago, Polygon has rebounded to 52 cents, marking a 40% increase from its bottom. Is this a sign of a comeback for Polygon? Let’s explore the upcoming changes and see what’s in store.

Token Migration to POL

The migration from the MATIC token to the new POL token is set to begin on September 4th. During this process, the existing $MATIC tokens will be converted to $POL on a 1:1 basis. Unlike MATIC, the new $POL token is a multi-utility token that offers greater utility and value.

One significant change is that staking for $POL will no longer occur on the Ethereum network. Instead, $POL will serve as both the gas and staking token for Polygon, which will make staking easier and cheaper for token holders by eliminating the need to bridge or pay Ethereum gas fees. Staking will now take place directly on the Polygon Proof of Stake (PoS) network.

Polygon 2.0 and zk-Proofs

The migration marks the beginning of Polygon 2.0, which incorporates zk-proofs to increase available Ethereum block space across multiple Layer 2 chains while retaining Ethereum’s security. New chains can opt to be part of the Ethereum Virtual Machine (EVM) or build out their Layer 2 infrastructure using Polygon’s Chain Development Kit (CDK), making the process faster, easier, and more cost-effective than ever.

This setup provides a strong foundation for building modular chains, leveraging Ethereum’s security combined with Polygon’s own security and zk-proof encryption. Polygon’s infrastructure positions it as a serious player for those bullish on modular blockchains, with tools that make it easier for developer teams to create new chains.

The Aggregation Layer: Polygon’s New Focus

The introduction of the new $POL token aligns with Polygon’s shift toward becoming an aggregation layer for other blockchains and their liquidity. This approach aims to address the issue of fragmented liquidity, where isolated Layer 2 networks, such as Base or Arbitrum, keep funds locked within their ecosystems.

How the Aggregation Layer Works

The aggregation layer will unify security, enabling developers to connect any Layer 1 (L1) or Layer 2 (L2) blockchain directly to it. By leveraging zk-technology, the aggregation layer maintains the independence of the individual chains while bringing together composability and liquidity into a single system. For example, a transaction on the Base network will stay on Base but still have access to Polygon’s liquidity, creating a win-win situation.

• Bridges will become easier and safer to use.
• An Aggregation Layer chain can automatically connect to Polygon zkEVM or Polygon PoS without needing to bridge first.
• A unified user experience will make navigating Web3 more intuitive, similar to accessing any website on the internet.

Polygon is calling this aggregation layer the “TCP/IP of Web3,” akin to how TCP/IP unified the internet, allowing connectivity across diverse networks.

Current Usage of the Polygon Network

Polygon’s main chain, the PoS network, currently boasts 1.5 million active wallets, having processed over 318 million transactions. A notable protocol on PoS is Polymarket, which has found a market fit with prediction markets, particularly for the U.S. Presidential Election. This includes various prop bets such as:

• Will RFK Jr. drop out of the race before November?
• Who will win the popular vote?
• Who will speak during this week’s Democratic National Convention in Chicago?

Polymarket’s use of Polygon’s network highlights the platform’s speed, ease of use, and low fees, which are driving its adoption and growth.

Other prominent platforms are also using Polygon PoS. For example, Reddit has utilized the PoS network since 2022 for its NFT collections and collectible user avatars, supporting millions of users with currently 34 million active users, all on Polygon.

Conclusion: Is Polygon Making a Comeback?

With the upcoming token migration, new modular chain-building tools, the development of the aggregation layer, and increased network usage from significant partnerships, the question is whether Polygon is making a comeback. The answer is that Polygon doesn’t need to make a comeback — it never went away. Instead, it has been continuously building and growing, albeit under the radar for some.