Polygon, a prominent Ethereum scaling solution. Has recently announced a significant update, that got MATIC investors all excited, and for good reason.
The dedicated team at Polygon has introduced a groundbreaking development strategy.
The introduction of a new cryptocurrency that is expected to bring about revolutionary changes.
This new digital currency, named Polygon 2.0 or POL for short, will serve as the native asset of the Polygon network. Replacing the previous token known as MATIC.
Consequently, it is crucial to understand what POL entails, how it surpasses MATIC in terms of its features and benefits and how this development affects you as an investor or trader and the overall functioning of the polygon chain.
Without further ado. Let us delve into these details.
According to a recent blog post from the POL team, this new token will be more powerful than MATIC ever was.
POL will be a "3rd-generation token". This means that POL will be able to function in a lot more use cases than regular cryptocurrencies.
A good example is how POL can be used to participate in governance, paying for gas, and staking.
In fact, there are several other improvement proposals, and POL is only one component out of many.
The roadmap also includes proposals that will increase the Polygon network's scalability and security.
Polygon has announced that will build a new staking portal like most other chains have, giving POL one more use case and making it easier for users to stake their POL tokens.
With these new series of improvement proposals, Polygon will become a more powerful platform. It will have new and improved adaptability for decentralized apps (DApps) that will be powered by POL and Polygon's fast and cheap network services.
In case the move to POL news got you worried about the MATIC in your portfolio, don't be. MATIC isn't going anywhere, rather it is simply getting an upgrade.
So far, the Polygon 2.0 update is still subject to Polygon community approval, and it may not even happen at all if it isn't approved.
However, if the Polygon community chooses to move ahead with this proposal, the network as a whole will be ahead by several strides.
With POL powering the Polygon network, users will be able to validate transactions on the Polygon network, participate in governance, and make a profit from staking their POL.
POL will also be more scalable than MATIC.
As it stands, MATIC can only support one chain. However, POL will be able to support several chains at the same time.
This lends significant power to Polygon, allowing it to sustain thousands of chains and still keep its level of security.
The transition to POL would also open up new revenue streams for validators. Validators will be able to stake POL and be entitled to a share of protocol fees, transaction fees, and other benefits.
Validators will still be able to play numerous roles on a single chain, such as creating zero-knowledge proofs and serving on data availability committees.
Polygon MATIC has completed a bullish ascending triangle pattern by breaking out over the overhead resistance of $0.73 as shown below.
The bulls have kept the price of the cryptocurrency above this breakout zone level and MATIC appears strong enough for now. However, the bears are putting up solid opposition at higher levels and MATIC may have a hard time crossing.
MATIC currently trades at $0.8465 and is up by a whopping 16% over the last day, and by 26.46% over the last week.
MATIC appears strong from both perspectives and overall, if the bulls can keep the price of the token above $0.72, MATIC might begin a fresh advance toward the $0.94 price resistance, before targetting higher highs.
At the same time, if the bears can pull the price into a reversal and break below $0.72 again, MATIC might begin to fall to $0.60.
MATIC's general trend is positive, However, traders should keep an eye on the charts and monitor these important price levels.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.