Following community consensus, on Thursday, the Polygon Foundation disclosed the timing of its impending ticker MATIC to Polygon token upgrade. In less than two months, the community is set to witness the anticipated Polygon token Upgrade and transfer, which will happen with the primary aim of launching Polygon’s native token growth. Analysts say that MATIC took a 7% nosedive as a result of this announcement. Polygon, the layer-2 scaling solution, also announced the anticipated deadline for Ethereum’s native token upgrade. The initial phase is scheduled for September 4th, and the token migration from MATIC to POL.
The strategic announcement is in line with the statement released on July 17. The update went live on the Testnet with the goal of “serving as a dress rehearsal” to discover and tackle any possible issues before the main net migration.
Polygon Token Upgrade – Migration Details
Within the states of migration, the Polygon token upgrade will provide security and “unify liquidity and shared state across multiple chains,” which has the potential to boost Polygon’s utility as an aggregated blockchain network.
Some MATIC holders would need to take specific steps for the migration depending on where they keep their tokens. According to recent news, MATIC holders on Polygon PoS and POL will be updated automatically, which means that these holders will not require any special action whatsoever. Users who are on Ethereum, Polygon zkEVM, or centralized exchanges (CEXes) must actively move their tokens manually. These holders will require a Polygon token upgrade/migration contract in order to upgrade to POL.
Advertisement Banner
What does this mean for Polygon: Rug or Glory?
Recently the Price of Polygon’s native token MATIC plummeted, this raised concern among investors and the general crypto market. The 7% price drop was due to the announcement. Within a short two hour period, the token which was trading at 0.54 USDT dropped to the 0.52 USDT mark. This plummet, however small, has led to serious questions regarding the potential stability of the token after the migration.
The price of MATIC dropped below the 0.51 USDT support area and it presently holds a f trading value between 0.513 USDT and 0.518 USDT. The monthly chart shows the performance of MATIC with a 4% retracement. On the other hand, the token has pulled green figures with a 2% increase in the weekly and biweekly charts. MATIC has reported a 34% rise in daily activities, trading a volume of $374.7 million daily.
Divergent views exist among market observers on Polygon’s native token performance. In an X article, cryptocurrency expert, The Cryptonomist, offered a pessimistic prediction for MATIC. The “beautiful breakdown” of MATIC from a “large rising wedge with higher TF resistance” was emphasized by the analyst. This implied to the analyst that even in the event of a retest, the token will keep declining. In that manner, she recommended a price objective of $0.4.According to Zayk charts MATIC was moving inside the macro chart’s falling wedge formation. Zayk Charts believed that the rise towards a higher value may be filed by a breakthrough from the bullish pattern.
Conclusion
The recent announcement about the Polygon token upgrade has led to a 7% decrease in MATIC’s value. Even with this slight decline, the token has managed to report greens in weekly and biweekly charts, also marking a 34% increase in daily trading activities. With the migration lurking around the corner, holders are advised to take the right approach to the even by either manually migrating their tokens or enjoying automatic migrations. Experts believe that after the migration, the token has the potential of making a solid comeback because of its utility. The Bit Journal continues to provide updates regarding important crypto updates, stay tuned!
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
