According to cryptocurrency analytics firm Santiment, certain on-chain metrics suggest that blockchain scaling solution Polygon (MATIC) may be on the verge of a price reversal.
Santiment noted that MATIC has recently seen a surge in active addresses and increased movement of dormant coins.
“Polygon has been one of the many networks that has been declining since the crypto pullback began in March. However, the noticeable spike in on-chain activity could be a sign that a MATIC reversal could be imminent. A spike in active addresses and dormant coins are common signals ahead of this.”
MATIC is trading at $0.423 at the time of writing. The 28th largest cryptocurrency by market cap is down more than 2% in the last 24 hours.
Polygon’s on-chain activity has surged as the project prepares for its imminent rebrand, scheduled for September 4. The new POL token will replace MATIC, the chain’s native gas and staking asset.
The rebrand, first proposed in July last year, is part of the network’s transition to Polygon 2.0, which aims to establish the project as “the value layer of the Internet.”
Polygon Labs co-founder Sandeep Nailwal said last year that POL was designed to “provide the benefits of multi-chain staking without the added risk of re-staking.”
“With the Polygon 2.0 proposal, the Polygon Ecosystem will expand into a L2 ecosystem where single chains can easily interoperate and share liquidity.”
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