Polygon Matic Migrated to Pol: What's Next for Pol?

[CryptoChamp]

 

Polygon has been making waves recently with the migration of its native token, MATIC, to POL. This major move is part of Polygon’s larger strategy to enhance its network. But with the price dipping and the market reacting, let’s break down what’s happening.

The Migration from MATIC to POL

• 1:1 Swap Ratio: Polygon has officially begun the migration of MATIC to POL. Holders can now swap their tokens at a 1:1 ratio. Exchanges like Binance and OKX are supporting this migration for users, making the process smoother.

• What’s the Goal? This migration is part of a bigger plan for Polygon to upgrade its Proof-of-Stake (PoS) chain to a more efficient ZkEVM Validum chain. This new chain promises faster transaction speeds and will integrate with AggLayer, Polygon’s liquidity solution.

Challenges Post-Migration

• Increased Selling Pressure: Unfortunately, the migration hasn't been all smooth sailing. Many POL holders have been forced to sell their tokens at a loss, causing increased selling pressure.

• Daily Transaction Volume in Loss: The data reveals that a significant portion of the transaction volume is happening at a loss, which adds to the token’s current challenges.

AggLayer and Validator Rewards

• Liquidity Boost: One of the key features of the new migration is AggLayer, a unified liquidity layer aimed at improving liquidity for Layer 2 solutions.

• Revenue Sharing for Validators: Validators staking POL tokens can now earn rewards from transaction fees generated by AggLayer. There’s also potential for future rewards from ZK proof-related revenues, which could enhance the overall economic model of the Polygon ecosystem.

Current Market Sentiment

• Price Decline: Despite the initial hype, POL’s market performance has been disappointing in the short term. The Polygon price has seen a 9.13% drop, with MATIC now trading around $0.3689.

• Future Developments: The migration is still in its early stages, and there’s optimism that future developments, like the fully operational ZkEVM Validum chain, could help turn things around.

A Look at the Price Pattern

• Descending Triangle Pattern: Analysts at Ali Charts have noticed that Polygon’s price is forming a descending triangle pattern. This could be a critical sign for traders to watch out for.

• Support Level to Watch: The key support level to monitor is $0.34. If this support holds, Polygon's token could see a rebound up to $0.94.

• Potential Downside: However, if the $0.34 level breaks, a correction down to $0.19 is possible. Right now, POL is trading at $0.37, with a 3% drop in price over the last 24 hours.

• Trading Volume Spike: Interestingly, POL has seen a huge 925% rise in trading volume over the past day, suggesting heightened activity and possible price volatility ahead.

Final Thoughts

Polygon’s migration is a bold move toward a more scalable and efficient network. However, with selling pressure weighing on POL, traders and investors should keep a close eye on the $0.34 support level. If it holds, we could see a strong rebound. But if it breaks, a deeper correction might be on the horizon.