Polygon (POL) bears have been unforgiving. In five months, MATIC has fallen 50%. However, with rising on-chain activity, prices might recover.
It has been a rough week for holders of Polygon, Bitcoin, Ethereum, and other top altcoins.
Bitcoin failed to close above $60,000, while Ethereum is struggling to contain stubborn bears. The second most valuable coin is pinned below $2,800–and there is no sign of bulls taking over.
When ETH struggles, its impact is felt across its ecosystem.
DeFi remains suppressed while NFT activity is, for lack of a better word, dead if compared to 2021 events.
The most exciting phase of a bull
market typically lasts about 12
months.2017 bull run 👉price pumped in
December 2016 and lasted for
11 months.2021 bull run 👉Price pumped in
October 2020 and lasted 13 months.Notice a pattern?
Both rallies started in… pic.twitter.com/iQy8cKFUda
— Ash Crypto (@Ashcryptoreal) August 27, 2024
MATIC Free Falling, Down 70% In 5 Months
MATIC, , is down -70% in five months after peaking in March and appears to be dumping even faster.
After the encouraging bounce in the first half of August, the token is now down nearly 30%, approaching the first level of support.
At this pace, it appears that MATIC will breach $0.37, extending recent losses in a painful bear continuation formation.
Even after this discouraging and deflating series of lower lows, there is hope.
Polygon On-chain Activity Rising Ahead Of MATIC-POL Migration
According to Santiment data, on-chain activity is picking up momentum.
Of note, more new addresses are being created while long-term holders (LTHs) are moving tokens.
Usually, whenever there is more activity on-chain, it could signal the beginning of another leg up and the end of the bear run.
Even so, the spike in active addresses and movement among LTHs is ahead of the highly anticipated upgrade set for September 4.
(Source)
On this day, Polygon, one of the largest scaling solutions for Ethereum, will rebrand from MATIC to POL while concurrently adding more utility to the token.
Interestingly, this is not the first time Polygon has rebranded.
Earlier, it rebranded from the Matic Network to Polygon, announcing plans to be a major player in scaling Ethereum. Looking at the progress made over the years, it has.
On September 4, Polygon will rebrand MATIC to POL.
However, this time, it will do so to align with their broader transition to the Aggregation Layer project, which is a big part of their Polygon 2.0 roadmap.
The Aggregation Layer aims to enhance layer-2 interoperability while continuing to scale the Ethereum mainnet rapidly.
Ahead of this migration, MATIC holders have to take action. Those holding MATIC in Polygon PoS don’t have to do anything.
The onus of MATIC holders on Ethereum, centralized exchanges like Binance, and Polygon zkEVM.
DISCOVER: The Hottest Upcoming Coinbase Listings of September 2024
Shift to POL: Will Buyers Take Over?
They have to move their assets to POL, explaining the spike in active addresses and among LTHs.
Binance, in a recent press release, said it would support the swapping and delisting of MATIC trading pairs on September 10.
(Source)
Whether MATIC prices will recover sharply before and after this major upgrade remains to be seen.
What’s clear is that buyers need to reverse recent losses and breach $0.60 for the uptrend to take shape.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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