Awakening Dormant Polygon (MATIC) Wallets: Reversal Ahead?

Polygon (MATIC) Sees Surge in On-Chain Activity

According to on-chain analytics firm Santiment, Polygon’s on-chain activity is experiencing a significant uptick as several major dormant wallets have recently become active. Santiment highlighted that Polygon has been in decline since the crypto market retracement began in March. However, recent on-chain data signals suggest this trend might soon change, with MATIC showing a marked increase in activity.

Recent data from Santiment reveals a dormant coin movement spike involving 69 billion MATIC, with 3,369 MATIC addresses interacting on the network, marking the second highest day of activity this year. The analytics firm indicated that such a notable surge in on-chain activity could be a precursor to a potential MATIC market reversal. Santiment stated that increased activity from dormant addresses often signals an upcoming market shift.

As of the latest data, MATIC has dropped by 1.15% over the last 24 hours, currently priced at $0.442. This is an 84.83% decrease from its all-time high of $2.92, recorded in December 2021. Market participants are closely monitoring whether this rise in on-chain activity will result in a bullish reversal for MATIC in the coming days.

Countdown to the POL Upgrade

The surge in on-chain activity is also coinciding with anticipation for the much-anticipated POL upgrade, scheduled for September 4.

On September 4, the upgrade from MATIC to POL will commence, with POL set to replace MATIC as the native gas and staking token for the Polygon PoS network during the initial phase. In subsequent phases, POL will play a vital role in the AggLayer.

• Holders of MATIC on Ethereum, Polygon zkEVM, and centralized exchanges will need to migrate to POL. A Polygon Portal Interface will be launched to facilitate this process.
• All MATIC tokens on the Polygon PoS network and staked MATIC on Ethereum will be automatically upgraded on September 4. Holders and stakers of MATIC on Polygon PoS and delegators on Ethereum will not need to take any action.

The POL upgrade is a community-driven initiative that aims to expand the utility of Polygon’s native token. It aligns with Polygon’s vision of being an ever-growing network of aggregated blockchains, powered by its native token.