- Polygon’s POL (formerly MATIC) has been on a tear over the past 24 hours.
- The rise of POL appears to be related to the major move on Binance.
- POL promises new income possibilities for its holders.
Last year, Polygon’s native token MATIC underperformed the broader cryptocurrency market despite announcing an exciting new roadmap and several technological developments. However, the network’s fortunes may change after Polygon upgraded MATIC to POL.
Over the past 24 hours, the asset has outperformed the overall crypto market, likely due to moves that appear to be related to the transfer from MATIC to POL on Binance.
Polygon’s POL (MATIC) Soars
Polygon’s POL (formerly MATIC) outperformed most crypto assets on Friday, September 13, surging more than 18% from a low of around $0.38 to a high of around $0.45. At the time of writing, it is trading at a price range of $0.42, but it has posted an impressive 11% gain over the past 24 hours. CoinMarketCap data.
By comparison, Bitcoin (BTC), the largest cryptocurrency by market cap, is up a modest 3.7% over the past 24 hours at the time of writing. Likewise, Ethereum (ETH) and Solana (SOL) are up 3% and 1.5%, respectively.
The recent surge in POL comes after Binance completed the migration from MATIC and opened deposits and withdrawals for the new token, as well as listing it on spot and futures trading.
Will the upgrade from MATIC to POL be a strong one?
It is difficult to say what impact the upgrade from Polygon MATIC to POL will have on the price, but the upgrade is expected to open up new earning potential for holders.
In the initial upgrade, POL replaced MATIC as the gas and staking token for the Polygon PoS chain. However, going forward, POL will play a critical role in securing Polygon’s envisioned multi-chain ecosystem, which seeks to scale Ethereum infinitely by horizontally connecting as many chains as possible on top of Layer 1 chains. At this stage, Polygon developers claim that POL will be a “super-productive token,” allowing holders to earn rewards on multiple blockchains.
However, all these benefits come at the cost of token inflation. Unlike MATIC, which has a fixed token supply, POL’s supply is set to increase by 2% per year for the next 10 years. Polygon developers claim that this inflation is necessary for the sustainable growth of the expanding network.
2% of token issuance will be used as a community treasury for validator rewards and development efforts and ecosystem project subsidies.
On the other side
- POL is still well below its 2024 high of $1.30 and its all-time high of $2.92.
- It seems unlikely that POL will reach its full potential until 2025.
Why this matters
The recent price surge following the upgrade from MATIC to POL shows that a rebound is possible after the dismal performance of recent months.
For more information about Polygon, read:
Polygon (MATIC) Targets AI-Like ZK Boom With $5M Custom Chip Investment
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