Polygon (MATIC) has seen a decline in network activity since the broader crypto market recovery began in March.
However, recent data shared by crypto-analytics platform Santiment indicates a potential change in this trend.
Bullish investment for Polygon (MATIC)?
Polygon’s native token MATIC has lost over 17% of its value in the past month alone, trading mostly below $0.52. Subsequent declines dragged the asset down to the press price of $0.43, but this could be an opportunity for buyers to accumulate it at a low valuation.
In his latest post on X, Santiment noted that there had been a noticeable spike in dormant token transactions on August 28, coinciding with the second largest number of Polígon addresses interacting with the network this year.
In fact, a total of 3,369 addresses interacted on chain on Polygon as the Age Consumed metric increased to 69 billion MATIC on the same day. Both metrics often serve as precursors to market reversals.
As such, these signals suggest that MATIC could be on the verge of a recovery, which could mark the start of a much-needed bullish phase for the network as it emerges from its prolonged downtrend.
Migration: MATIC to POL
The Polígon ecosystem is preparing for the official switch from MATIC to the POL token, scheduled for September 4 this year. This update will essentially see POL take over as the native gas and stake token for Polygon’s Proof of Stake (PoS) chain, reflecting a major milestone in the Polygon 2.0 roadmap released last year.
The POL update was initially released on the testnet on July 17 to facilitate a smooth transition. The main purpose of this phase was to detect and address potential issues, allowing users and developers to get used to the new system before the main network upgrade.
MATIC holders on the Polygon PoS chain will experience an automatic and seamless conversion to POL. Users are not required to take any action from their end. However, holders of MATIC on Ethereum, Polygon zkEVM or centralized exchanges will need to upgrade manually via an Ethereum migration contract, as previously reported.
This week, Binance announced its support for this upcoming transition.
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