- Polygon (MATIC) shows signs of recovery with increased on-chain activity and active addresses.
- The movement of dormant coins suggests a possible trend reversal for MATIC.
- A network upgrade on September 4th will transition MATIC to a new token, POL.
Polygon-MATIC continues to show potential for recovery after a considerably long downtrend. According to data from Santiment, a leading blockchain analytics platform, on-chain activity for the network has taken a serious leap, suggesting a probable change in market sentiment.
Since March, when the cryptocurrency market began its retrace, Polygon has been one of several networks experiencing a downturn. Notwithstanding, the latest spike of active addresses and the relocation of coins that haven’t moved for a long time on the network could be bets of a trend reversal for MATIC.
The active addresses show the real number of unique addresses that take part in transactions on the network, whether it is by sending or receiving the cryptocurrency. The increased amount of active addresses is usually a sign of a rising interest or a renewed engagement with a certain blockchain. In the situation of MATIC, this surge indicates that more users are becoming part of the network, which might be a sign of the higher demand for MATIC tokens.
Improve in most simple words in the same word count and start with the same word ” Moreover, the dormant coins, short of being static for a considerable time, can notice long-term owners detaching themselves. Such behavior often comes before a price reversal, as it is generally a sign of shifts in market sentiment or of trade actions to be taken in the near future.
The rise in on-chain activity on Polygon is accompanied by these increases in active addresses and dormant coin movements, and together, they point out the potential of MATIC’s future. Market participants will closely watch these metrics to gauge whether this is the beginning of a more sustained recovery or merely a temporary uptick in activity.
Polygon’s Upcoming Upgrade to POL Fuels Market Optimism
The buzz around MATIC will be even augmented by the upcoming major network update that has been scheduled for September 4th. Polygon revealed a significant transition, upgrading from MATIC to a new token, POL, which will be the native gas and staking token for the Polygon Proof-of-Stake (PoS) network of which the upgrade is based.
The transition to POL was a result of a long process of discussion and proposal among the community, starting with PIP-17 last year which put forth the idea of a different approach for the Polygon project.
This involved making a token with increased functionality that would represent the needs of the aggregated blockchain network. The POL token was a hyperproductive token that was designed to provide important services across all the chains within the Polygon network, including the network’s upcoming AggLayer.
The upcoming network upgrade will also mean some changes with regard to the developers and the decentralized applications (dApps) operating within the Polygon ecosystem. DeFi protocols and dApps will have to revise their smart contracts and other infrastructure concerning POL to maintain their usefulness and optimal functionality.
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