Recently, Polygon (POL) experienced a significant boost in its value after the successful launch of its new native token on major exchanges like Binance. This milestone marked the completion of the migration process from MATIC to POL, automatically converting all MATIC tokens to POL tokens. As a result, the trading volume for POL witnessed a remarkable surge of more than 320%, as reported by CoinMarketCap.
Following this transition, the price of the token has seen a surge of over 7% in the past 24 hours. Furthermore, the introduction of futures trading for POL on Coinbase International and Coinbase Advanced on 19 September is expected to further stimulate trading activity.
The current momentum suggests that the continuous migration from MATIC to POL is gaining traction, especially in light of the recent advancements in Polygon’s ecosystem.
Analysis of Price Movement
In the cryptocurrency realm, fundamental developments often translate swiftly into market movements. As observed in the 4-hour chart of POL/USDT, there has been a notable bullish trend emerging post the Binance listing.
Prior to this listing, the price was lingering around $0.36, but a breakout was witnessed subsequently. This breakout could potentially lead to gains exceeding 30% if the support holds firm at the $0.39 level.
The surge in trading volume during the MATIC-to-POL migration has been a significant catalyst for this price surge.
Furthermore, a double bottom pattern in the price action indicates the potential for a continued upward climb, especially considering the historical performance of crypto markets in the final quarter of the year.
The bullish turn in the RSI divergence on the charts offers added reassurance for traders amidst this rally.
While POL encountered resistance at the $0.45 level, such challenges are common at crucial price points, and sustained momentum could potentially break through these hurdles.
Peak in POL’s OI-Weighted Funding Rate
Subsequent to the Binance listing, the OI-weighted funding rates for Polygon witnessed a notable spike, with long traders paying short traders, indicating a heightened market interest in the token.
At present, the Open Interest stands at $10.11 million, centered around the $0.38 price level, showcasing the prevailing enthusiasm surrounding POL.
If the prevailing excitement evolves into a lasting trend, Polygon stands to witness sustained growth, with the migration paving the way for further price appreciation.
Comparative Analysis: POL Ecosystem Token vs. MATIC
The shift from MATIC to POL has drawn attention to key distinctions between the two tokens. At the current juncture, POL is valued at $0.410, surpassing MATIC’s price of $0.389.
Furthermore, POL’s market cap has nearly doubled from $1.2 billion to $2.3 billion, outstripping MATIC’s cap. The 24-hour trading volume for POL is approximately four times that of MATIC, leading to a significantly higher volume-to-market-cap ratio for POL.
Over the recent 24-hour period, POL has recorded an 8.5% price surge, eclipsing MATIC’s 3.16% uptick. Despite the migration process, the circulating supply has remained stable, setting a promising stage for POL’s prospective growth.