Polygon (MATIC) Faces Decline but Shows Signs of Bullish Reversal
Since March, Polygon (MATIC) has been experiencing a decline in network activity, coinciding with a broader crypto market retracement. However, recent data from the crypto analytics platform Santiment suggests a potential shift in this trend.
Is a Bullish Reversal on the Horizon for Polygon (MATIC)?
Over the past month, Polygon’s native token, MATIC, has lost more than 17% of its value, mostly trading below the $0.52 mark. As of now, MATIC is priced at $0.43, indicating a significant decline. However, this drop may present a buying opportunity for investors to accumulate the asset at a lower valuation.
According to Santiment’s latest data, there has been a notable increase in dormant token transactions on August 28th. This surge coincided with the second-highest number of Polygon addresses interacting with the network this year. A total of 3,369 addresses were active on-chain, while the Age Consumed metric skyrocketed to 69 billion MATIC on the same day. Both of these metrics are often considered indicators of a potential market reversal.
These signals suggest that MATIC might be on the brink of a recovery, potentially marking the start of a bullish phase as the network aims to emerge from its prolonged downtrend.
The Transition from MATIC to POL
The Polygon ecosystem is gearing up for a significant transition, with the official switch from MATIC to the POL token scheduled for September 4 this year. This upgrade will see POL become the native gas and staking token for Polygon’s Proof of Stake (PoS) chain, a crucial milestone in the Polygon 2.0 roadmap unveiled last year.
The POL upgrade was initially launched on the testnet on July 17 to ensure a seamless transition. The focus during this phase has been to identify and resolve potential issues, allowing users and developers to familiarize themselves with the new system before the mainnet upgrade.
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