Sep 14, 2024
6thTrade
Polygon's native token, POL, surged by 15% on Friday following a significant update: Binance, the world’s largest cryptocurrency exchange, added spot and perpetual contracts for POL trading. This marks a major milestone as the token completes its rebrand and upgrade from the long-standing MATIC. $POL
Earlier in the day, POL spiked from around $0.38 to nearly $0.45, its highest level since late August, before retracing slightly. Despite this pullback, the token remains up by 15% in the past 24 hours, outperforming the relatively flat Bitcoin. Notably, POL was also the top performer in the CoinDesk 20 Index during this period, catching the eye of traders across the market.
Polygon recently unveiled its upgraded token, POL, replacing MATIC in a migration that introduces new tokenomics. One key change is an annual emission rate of 2%, signaling a long-term growth strategy. Analysts suggest that the fresh ticker symbol and chart may have played a psychological role in attracting traders, contributing to Friday’s impressive price action.
“Although the MATIC-to-POL spot migration was already complete, the introduction of new charts has a massive impact,” noted crypto analyst DeFiyst. "It’s the first major token migration we’ve seen succeed in a while, and it could inspire other projects to follow."
The POL rally comes amid an otherwise stable day for the broader crypto market, highlighting its standout performance. The token’s listing on Binance further signals that this rebrand from MATIC to POL is here to stay, with the upgrade process officially wrapped up.
Polygon’s transition to POL was announced in July, following a year of community-led discussions. The new token serves as the native gas and staking token for the Polygon PoS chain, an Ethereum-compatible sidechain that relies on proof-of-stake (PoS) consensus.
The upgrade is a key part of Polygon’s vision to evolve into a ZK chain and integrate with AggLayer, a solution designed to unify liquidity and state across multiple chains. According to Vishal Chawla of The Block, POL will retain MATIC's original tokenomics, with a fixed supply of 10 billion tokens. The initial 1:1 exchange ratio from MATIC to POL has been established, and the emission rate is set to gradually increase by 2% annually over the next decade.
MATIC holders on the PoS chain have already been automatically upgraded to POL, requiring no action on their part. However, those holding MATIC on Ethereum, Polygon zkEVM, or centralized exchanges will need to actively migrate their tokens using a dedicated migration contract.
As of Friday, POL was trading at $0.42, up 12.7%, with a market cap of $3 billion. While the overall cryptocurrency market saw modest gains, with the GMCI 30 index up 1.5%, POL stood out as one of the strongest performers, showing a renewed wave of interest and optimism among traders.
For investors and traders, Polygon's successful transition and the growing market attention to POL represent an exciting opportunity, potentially signaling more bullish momentum ahead.
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