- POL goes live after switching from Polygon MATIC.
- The upgrade has resulted in an increase in whale activity and trading volume.
After a long wait, the migration from MATIC to POL has finally gone live as planned by Polygon developers. According to the team, it took a year of community discussion to upgrade POL as the native token for Polygon.
Via their official page, Polygon shared the transition and stated that,
The wait is finally over: MATIC has been upgraded to POL via the Polygon network! This means that every transaction taking place on Polygon PoS starting today will use POL as the original gas token.”
Notably, this is a technical upgrade that paves the way for the future of the ecosystem as an aggregated network. In addition to its utility for gas, the token will also be used to fuel the subsidy ecosystem and community coffers.
Furthermore, the Polygon team revealed that the upgrade will play a crucial role in providing network security for services such as sequencing, ZK-proof generation participation in DACs and more.
As previously reported by AMBCrypto, the upgrade has received a major boost from several crypto exchanges, including Binance. Binance will remove all MATIC trading pairs starting September 10th.
What it means for MATIC/POL
Although the upgrade was highly anticipated, the POL price charts have not seen a positive response. At the time of writing, POL was trading at $0.3761, having fallen 4.09% in the past 24 hours.
However, trading volume has seen an exponential increase, increasing 928.5% to $10.2 million. Moreover, the crypto market capitalization also saw an increase, according to the Coin market capitalization.
Source: Whale Alert
In particular, one of the main factors driving the increase in the number of POL/MATIC tokens is increased whale activity. As revealed by Whale Alert, $608.7 million worth of Matic tokens have been transferred from Bitvavo to an unknown wallet.
Such massive transfers have helped increase trading volume for the altcoin as it tries to establish itself within the new upgrade.
Source: Coinglass
Furthermore, Coinglass data shows that MATIC is enjoying demand for long positions, evidenced by a positive OI-weighted funding rate. This suggests that investors are positive about the altcoin’s future prospects and are betting on further gains.
Source: Tradingview
Is your portfolio green? View the MATIC Profit Calculator
Therefore, as MATIC transitions to POL, the market is reacting with increased trading and whaling activity. Purchasing from whaling activities could drive up prices as demand increases.
Therefore, if market conditions are favorable, POL will retry the previous resistance level of $0.39 in the short term. Importantly, markets will wait to see how POL responds to the upgrade.
