According to U.Today, Polygon, a layer-2 scaling solution for the Ethereum blockchain, has experienced a significant increase in large transaction volume, indicating heightened whale activity. Data from IntoTheBlock reveals that Polygon's MATIC large transaction volume reached $58.25 million in the last 24 hours, marking a 16,263.06% surge from the previous day. Large transactions are defined as those involving amounts greater than $100,000, typically reflecting the activity of whales and institutional players. This surge in large transactions often signals increased buying or selling activity among these major market participants.
The spike in whale activity comes as Polygon prepares for a major upgrade, transitioning from MATIC to POL as its native gas token on September 4, 2024. At the time of writing, MATIC had risen by 6% in the last 24 hours, trading at $0.445. The upcoming upgrade will see POL replace MATIC as the gas token for the Polygon PoS network, facilitating transactions and securing the network through validator incentives. Post-upgrade, all transactions on the Polygon PoS network will automatically use POL, with no action required from current MATIC holders. Validators will also receive rewards in POL for their role in securing the network and processing transactions.
The dual functionality of POL as both a gas and staking token is designed to align incentives, ensuring the network's integrity and performance. POL is built on OpenZeppelin's ERC-20 standard and supports EIP-2612, making it compatible with the broader Ethereum ecosystem. The migration from MATIC to POL will be managed by a smart contract, allowing for a 1:1 conversion and enabling users to continue transacting on the Polygon network. Additionally, the Polygon bridge will support POL, ensuring seamless token transfers between Polygon PoS and Ethereum.
