Some on-chain metrics suggest that blockchain scaling solution Polygon (MATIC) could be on the verge of a price reversal, according to crypto analytics firm Santiment.
Santiment notes that MATIC has recently seen an increase in active addresses and dormant coin movements.
“Polygon is among the many networks that have been declining since the cryptocurrency retracement began in March. However, a notable spike in on-chain activity may be a sign that a MATIC reversal could soon be brewing. Active addresses and dormant coin spikes are common signals that precede this.”
At the time of writing, MATIC is trading at $0.423. The 28th largest crypto asset by market cap has fallen by more than 2% in the last 24 hours.
Polygon’s on-chain activity has increased as the project prepares for an impending rebranding scheduled for September 4. The new POL token will replace MATIC as the chain’s native gas and staking asset.
First proposed last July, the rebranding 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 is designed to “deliver the benefits of multi-chain staking without the added risks of restaking.”
“With the Polygon 2.0 proposal, the Polygon ecosystem will transition from a single chain to an ecosystem of L2s that can easily interact and share liquidity with each other.”
Don’t miss a thing – Subscribe to receive email alerts directly to your inbox
Check price
Follow us on XFacebook and Telegram
Surf the Daily Hodl Mix
 
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: Midjourney
