After a period of anticipation, the movement from MATIC to POL has officially commenced as planned by the Polygon development team. The shift to POL as the native token for Polygon comes after a year of community deliberation to enhance the ecosystem.
In an announcement on their official platform, Polygon declared the completion of the transition:
“The moment has arrived: MATIC has now evolved into POL across the entire Polygon network! Starting today, every transaction on Polygon PoS will utilize POL as the primary gas token.”
This technical transformation not only paves the way for the network’s future as a unified ecosystem but also establishes the token’s significance in powering the grants ecosystem and community treasury in addition to its role in gas fees.
The Polygon team also emphasized that the upgrade will have a pivotal role in fortifying network security for various services, including sequencing, ZK-proof generation, participation in DACs, and more.
According to previous reports by CryptoCrypto, the transition has garnered significant support from several cryptocurrency exchanges such as Binance, which is set to remove all MATIC trading pairs by the 10th of September.
Impact on MATIC/POL
Despite high expectations surrounding the upgrade, the price performance of POL has not seen a positive upturn. Presently, POL is trading at $0.3761, reflecting a 4.09% decline over the last 24 hours.
Nevertheless, there has been a remarkable surge in trading volume, soaring by 928.5% to $10.2 million. Furthermore, there has been an increase in the crypto’s market capitalization, as noted by Coinmarketcap.
One significant contributing factor to the rise in trading volume for POL/MATIC tokens has been the heightened activity of large holders. Reports from Whale Alert disclosed a transfer of Matic tokens worth $608.7 million from Bitvavo to an undisclosed wallet.
Such substantial transfers have played a role in boosting the trading volume for the altcoin as it seeks to establish itself within the new upgrade environment.
Additionally, data from Coinglass indicates that MATIC is witnessing demand for long positions, evidenced by a positive OI-weighted funding rate. This suggests that investors hold an optimistic outlook on the altcoin’s future and are positioning for further growth.
Consequently, with the transition from MATIC to POL underway, the market is experiencing heightened trading activity and notable whale participation. Should these large holders continue to accumulate, there is potential for an upward price movement driven by increased demand.
Therefore, under favorable market conditions, POL is expected to challenge the previous resistance level at $0.39 in the near term. Observers are keen to witness how POL adapts to the upgrade as the market dynamics continue to evolve.