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After months of anticipation that followed the Polygon 2.0 tokenomics model announcement in July 2023, can the latest update boost investor confidence and push the price of MATIC higher in the coming days?
POL: A “Massive Technical Upgrade To MATIC”
The team behind Polygon proposed a token upgrade that would replace the network’s MATIC token with POL to let POL function as a single token for all Polygon-based networks.
In terms of functionality, POL will allow holders also to become validators within the network, letting them validate any number of chains that Polygon is apparently spinning up every day.
As per Polygon founder Sandeep Naiwal, POL is a “massive technical upgrade” to the MATIC token. It will give users the benefits of multi-chain staking without the added risks of restaking. “With the Polygon 2.0 proposal, the Polygon Ecosystem will expand from a single chain to an ecosystem of L2s that can easily interoperate and share liquidity with each other,” said Nailwal.
The executive notes that Polygon built POL from the ground up to become the first hyperproductive and third-generation tokens. Generation 1 is Bitcoin, which provides no mechanism for holders to play a role in network security. Generation 2 is Ethereum, which lets holders stake to secure the network. In Nailwal’s opinion, POL is Generation 3, allowing holders to secure several networks and perform multiple roles.
Is MATIC Price About To Double?
The price of MATIC has been on a rollercoaster ride in recent months.
The token benefited from the prior announcement about the rollout of Polygon 2.0. The news came not long after it was accused in early June of being an unregistered security by the United States Securities and Exchange Commission (SEC) in separate case filings against Coinbase and Binance.
The token’s price fell over 31% from 90 cents on June 3 to as low as 58 cents in the span of two weeks after the SEC’s lawsuit.
Then, the well-known Robinhood brokerage firm indicated it was planning to delist MATIC, along with other crypto coins. This news forced the MATIC price to plummet rapidly, and analysts and investors alike are watching to see if and when it can mount a strong recovery.
MATIC was, at the time of writing, trading for $0.558661 per coin, according to CoinGecko, having gained 0.4% in the past 24 hours.
Although still in progress, the upgrade to POL from MATIC would likely be the catalyst that propels the price of the token north amid a generally bullish market outlook. The critical resistance zone investors should watch out for is $0.60. If the bulls clear this hurdle, the next stop for MATIC could possibly be $1.