Polygon (MATIC) Sets Date for Token Upgrade to POL, MATIC Drops 7%

On Thursday, the Polygon Foundation announced the date for its upcoming MATIC to POL upgrade after reaching a community consensus.

Layer-2 scaling solution for Ethereum, Polygon, has finally revealed the date for its highly anticipated native token upgrade. The upgrade will begin with the token migration from MATIC to POL.

According to the announcement, POL will initially replace MATIC “as the native gas and staking token for Polygon PoS.” The upgrade went live on the testnet on July 17 to “serve as a dress rehearsal” and identify and fix potential issues before the mainnet migration.

“Upgrading Polygon PoS from MATIC to POL is a significant undertaking that requires the highest security possible, including robust testing.  (…) A testnet migration allows users, developers, and infrastructure providers to familiarize themselves with the processes of upgrading, ensuring technical validation and minimizing disruptions during the mainnet upgrade.”

During the subsequent phases, the POL upgrade aims to expand Polygon’s utility as an aggregated blockchain network by providing security and “unifying liquidity and shared state across multiple chains.”

Some MATIC holders may have to take certain actions for the migration depending on where they hold their tokens, as per the post. POL will be automatically upgraded for MATIC holders on Polygon PoS and no action is required.

Meanwhile, action is required for users on Ethereum, Polygon zkEVM, or centralized exchanges (CEXes). These holders will have to upgrade to POL through a token migration contract.

Following the news, Polygon’s native token saw a price decline of around 7%. The token, trading at $0.54 at the time of the announcement, fell to the $0.52 price range in the next 2 hours.

MATIC’s price dropped to the $0.51 support zone, currently hovering between the $0.513 and $0.518 range. This performance represents a 4% retrace in the monthly chart. However, the token exhibits green numbers in the weekly and biweekly timeframes, with a 2% increase. Additionally, MATIC registers a 34% increase in its daily activity, with a daily trading volume of $374.7 million.

Some market watchers have contradictory opinions on Polygon’s native token performance. Crypto analyst The Cryptonomist shared a bearish forecast for MATIC in an X post.

According to the post, the analyst highlighted that MATIC had a “beautiful breakdown” from a “large rising wedge with higher TF resistance.” This suggested to the analyst that the token will continue descending, even if a retest is possible. As a result, she suggested a price target of $0.4.

Meanwhile, Zayk Charts stated that MATIC was moving inside a falling wedge pattern in the macro chart. The analyst considered that a breakout out of the bullish pattern could fuel a rally toward the $1 price range.

Crypto analyst Alex Clay considers MATIC to be at a “generational bottom.” Clay highlighted that the token saw a 20,000% return run after its previous 630-day-long channel accumulation.

The analyst believes that MATIC’s current 1218-day-long accumulation inside a Symmetrical triangle could lead to double-digit price targets. His prediction includes hitting the $4.5, $7.1, and $9.75 resistance levels before reaching a double-digit target.