Perspectivas sobre la evolución del precio de POL después de la eliminación de MATIC.

The native token of the Polygon network, MATIC, will change its name to POL tomorrow, September 4, marking a milestone in the ecosystem’s evolution. This rebranding comes at a time when Polygon, which shined during the “DeFi Spring” of 2021, has lost much of its market momentum.

Two weeks ago, the token’s price climbed to $0.53. However, that price could not sustain and has now fallen to $0.40.

This decline is not surprising, as since 2022, MATIC has shown poor performance in the market.

After reaching its all-time high of $2.92 in 2022, its price began to fall, facing strong resistance at the $1 mark, a level it has only surpassed three times since then, as shown in the TradingView chart.

Market psychology, as explained in CriptoNoticias’ Criptopedia, indicates that these historical resistances, like the $1 mark in MATIC’s case, are formed when a financial asset struggles to surpass a specific price.

This phenomenon, along with low activity on the Polygon network, has influenced MATIC’s price weakness.

La actividad de la red Polygon está en declive

On-chain indicators also reflect a bleak outlook for the Polygon network. According to the analysis site Artemis, the number of daily active addresses on the network reached its peak in June 2023, with 1.6 million, but has since drastically dropped to the current 633,000 active addresses.

Similarly, daily transactions have decreased, going from a peak of 16 million in November 2023 to just 2.9 million currently, as shown in the following graph.

The total value locked (TVL) in the network has also experienced a significant decline, from $5.3 billion to $885 million in the last three years.

Facing this scenario, Polygon Labs, the token issuer, decided to replace MATIC with POL, describing this change as “a community-driven upgrade,” as reported by CriptoNoticias.

POL is designed to be the next-generation native token in the Polygon ecosystem, providing governance rights and enhancing network scalability.

This will allow a decentralized group of PoS (Proof of Stake) validators to provide security, resiliency, and neutrality to each network within the Polygon ecosystem.

Furthermore, MATIC users will not need to take any action to update their tokens to POL, as the change will be automatic.

La comunidad de MATIC no espera aumentos en el precio del activo

Despite these improvements, the MATIC community does not anticipate a significant increase in the asset’s price. Users of the token have expressed their concerns about the future of POL on the Reddit social network.

Some, like robertsa901, pointed out that if a strong reversal does not occur soon, the price could fall even further. “MATIC was my number 1 coin, but even now I have doubts and sold all mine,” they commented.

“I bought 5,500 MATIC in 2020 and 2021, which allowed me to make a good profit. Perhaps that was its only bullish run. I cannot see it going back up that way.”

Another user, Tall_Run_2814, stated that Polygon no longer has the same user and market activity as in 2021, something mentioned previously in this article. However, they still believe it is a “great project.”

Additionally, some users, like Material-Emotion1245, have noted that the Polygon Foundation has been selling its assets, which could be affecting the token’s price.

“The Polygon Foundation has a large portion of its assets as an institution, so if they wanted to, they could probably increase the price significantly. Maybe they do not want the price to be high to keep costs low,” they remarked.

Las actualizaciones no garantizan una subida de precio

Finally, it is important to note that name or image updates do not always guarantee an increase in the price of a digital asset.

The trader known as Daan Crypto on the X social network mentioned that in 2017, these strategies could increase a coin’s value by up to 100%. However, the market has evolved, and today a project’s success depends on more complex factors.

A recent example is the cryptocurrency Cardano (ADA), which activated the Chang hard fork. This update decentralized the network’s governance, previously managed by IOHK, the company founded by Charles Hoskinson.

However, the market did not react as expected, and ADA’s price remained at $0.32. So far in 2024, the cryptocurrency has seen a 28% increase, but is still 89% below its all-time high.

Although the change from MATIC to POL represents a new stage for Polygon, the future price of POL will depend on multiple factors, including the market’s response to these changes and the network’s ability to regain its once-held activity.