6.50 billion MATIC tokens migrated to POL, reaching 64.8% conversion rate.
Migration is part of Polygon 2.0 upgrade, enhancing network functionality.
POL offers new features like multi-chain staking, appealing to long-term investors.
Polygon’s ambitious token migration from MATIC to POL has reached a milestone, with 6.50 billion tokens successfully converted as of today. This transition, representing a 64.8% conversion rate, marks a pivotal moment in the network’s evolution towards its Polygon 2.0 vision.
The migration process, which commenced on September 4, 2024, stems from a comprehensive upgrade plan first outlined in mid-2023. This strategic shift aims to bolster Polygon’s scalability, security, and overall ecosystem functionality.
POL, as the new native token, assumes the role of MATIC in facilitating gas fees and staking operations, while introducing advanced features such as multi-chain staking.
The introduction of POL has catalyzed major trading activity, with investors eagerly swapping their MATIC holdings at the 1:1 conversion rate. Tom Wan, a strategist at 21.co, highlighted the momentum of this transition, noting that September 10 alone saw over 1 billion tokens migrated, contributing to the impressive 6.50 billion total.
Can the new MATIC prove to be superior?
POL’s enhanced utility has garnered attention from investors seeking long-term value propositions. Brian Quinlivan, lead analyst at Santiment, emphasized POL’s superior features compared to its predecessor.
The token’s capability for multi-chain staking not only fortifies network security but also opens up new avenues for fee generation across the Polygon ecosystem.
Source: Dune
Despite the clear benefits, the migration has not been without its challenges. Retail traders, in particular, have expressed confusion regarding the implications for their portfolios.
In response, the Polygon team has provided comprehensive guidance, supplemented by clarifications from social media influencers to ease the transition process.
As the migration progresses, MATIC will gradually phase out, allowing users a comfortable timeframe to adapt to the new POL-centric ecosystem. This measured approach underscores Polygon’s commitment to a smooth transition, balancing technological advancement with user accessibility.