- Polygon migrated from $MATIC to $POL on September 4, 2024, enhancing scalability and security.
- $POL introduces multi-chain staking and new earning opportunities, making it attractive for long-term holders.
- Wallet growth for $POL is rapidly catching up to $MATIC, with a surge in new wallet creations since the migration.
Polygon’s recent migration from $MATIC to $POL marks a significant transition in its network, officially starting on September 4, 2024. This shift is part of the larger Polygon 2.0 roadmap, initially introduced in mid-2023.
This transition aims to enhance the network’s scalability, security, and efficiency, with $POL replacing $MATIC as the native gas and staking token. The team spent months preparing for this migration, including launching a testnet in July 2024 to help developers and users familiarize themselves with the changes.
Polygon’s Long-Term Outlook and Benefits of $POL
According to analytical firm Santiment Insights, the move to $POL is not merely a token swap but a technical upgrade designed to improve the ecosystem’s long-term potential. However, retail traders have shown some confusion over the implications for their portfolios. On social media, influencers like Crypto Vadim have worked to clarify these changes for the broader audience.
The switch has sparked a noticeable increase in trading activity as traders exchange their $MATIC tokens for $POL. While the conversion rate remains 1:1, the utility of $POL goes beyond what $MATIC offered. With new features like multi-chain staking, $POL aims to provide enhanced network security and additional earning opportunities, making it a more attractive option for long-term holders.
An interesting trend observed during the migration is the disparity in network growth between $MATIC and $POL. Since the start of September, $POL has seen a rapid increase in new wallet creations. Currently, $POL is catching up to $MATIC, with 487 new wallets compared to $ MATIC’s 794. This growth trajectory indicates that $POL will likely surpass $MATIC in daily wallet creation soon.
Another noteworthy aspect is the liquidation of $MATIC wallets as traders switch to $POL. Since mid-August, around 11.8K $MATIC wallets have been emptied, while 1,826 non-empty $POL wallets have emerged, marking a 64% increase. Wallets holding 1 million or more coins are accumulating a significant portion of the remaining $MATIC supply, nearing 95%, while $ POL’s concentration among large holders has slightly decreased.
Price volatility surrounding the migration has also drawn attention. Both tokens saw price drops in the lead-up to the transition, primarily due to broader market trends. Still, traders are eyeing $POL for its long-term advantages, such as its governance capabilities and potential to generate fees from multiple sources.
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