MATIC token goes into history!
As a well-known Layer 2 blockchain solution in the cryptocurrency market, Polygon’s native token $MATIC is preparing to undergo a bold transformation in the near future.
According to Polygon’s official announcement, Polygon is scheduled to undergo a mainnet upgrade on September 4, 2024. After the upgrade, $POL will replace $MATIC and become the main token used for Gas fees and staking functions in the network in the initial stage. $POL It is expected that $MATIC’s existing token economics, distribution, and total supply will be maintained.
Image source: X polygon announcement
Polygon's decision to transform is an important step towards Polygon's 2.0 roadmap. However, such a transformation is not entirely a good thing. Now that the vast majority of $MATIC investors are in a state of loss, Polygon's transformation will undoubtedly bring more disastrous investments. Seeds of identification and challenge.
Why are we facing serious challenges?
Let’s take a look at the most real on-chain data first. Since April this year (2024), the situation of $MATIC has been very unoptimistic. Not only has the number of daily active addresses declined seriously, but the overall network growth and activity have also shown a downward trend. .
Specifically, from August 11th to August 12th, in just one day, $MATIC’s active addresses plummeted from 500,000 to only 88,000, and the transaction volume on the Polygon chain dropped from 130,000 in the same period. The number of transactions has dropped significantly to 17,000, and the serious decline in user activity has undoubtedly cast a shadow over the future of $MATIC.
According to another data, most $MATIC investors are currently losing money. Judging from the current currency price of $0.4, it has fallen by more than 80% from the historical high of $2.92, with nearly 97.74% $MATIC holders were all in the red, with only 1.49% making a profit.
Although Polygon is officially scheduled to transform in September, the decline in data and the loss of holders undoubtedly make the prospects of $POL after $MATIC's transformation not very optimistic.
Does technical analysis suggest a reversal?
However, some analysts pointed out that although the market situation of $MATIC is not good, judging from the chart, the price of $MATIC is forming an ascending triangle. If MATIC can successfully break through the secondary resistance level of $0.4348, it may theoretically drive the market rebound.
Image source: Price predictions from X analyst Ali
Meanwhile, $MATIC’s current relative strength index (RSI) sits at 49.14, which is in neutral territory, meaning $MATIC is neither overbought nor oversold.
But analysts also warned that a weekly close below $0.30 would invalidate the bullish thesis mentioned above.
This transformation of Polygon is undoubtedly a "big bet" for the future. $MATIC was renamed $POL. The purpose is to enhance the practicality and security of Polygon's native network through Polygon 2.0, so as to attract investors. , incentives for developers, but Polygon still has a long way to go to succeed after the transformation.