Investors Lose Sight Of MATIC As It Drops 16% Ahead Of Network Upgrade
September 04 2024 - 7:00PM
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MATIC suffers another string of losses as the broader market
pullback forces the bulls to the defensive. According to CoinGecko,
the Polygon Network native coin has bled 16% more since last week
as the bears reverse gains made back in August. This move occurred
despite Polygon Network’s upcoming upgrade that switches MATIC to
POL, improving the platform’s tokenomics. Related Reading:
RENDER Flashes Red With 18% Short-Term Loss – Details As the market
moved 5% downward, investor confidence in MATIC has been shaken,
possibly damaging the token’s performance in September. Short-term,
investors are looking at more pain if the market continues to
freefall. Momentum Lost After Hype-Led Rally For MATIC MATIC
bears are currently attempting to break through the $0.39 support
level after ten days of a consistent downward trajectory. This
leaves the bulls in a precarious position in the short term as a
bearish breakthrough on this support level will drive the token
toward $0.33, a level unseen since March 2021. With the major
cryptocurrencies also experiencing strong bearish momentum, we can
expect MATIC to fall even further despite the improvements brought
by the upcoming network upgrade. Investors and traders can expect
the token to fall further, possibly flipping the $0.39 support
level to resistance. Investors and traders could expect
increased volatility depending on the condition of the larger
market once this action starts. Although much of the market moves
in line with the swings of the two leading cryptocurrencies, market
movers like Bitcoin and Ethereum should also be under observation.
Network Migration And New On-chain Developments The MATIC to POL
migration will start today, September 4, which affects all facets
of the network. According to an earlier blog post, the network
migration will improve the tokenomics of the platform making it
more attractive for users and future validators. Related
Reading: SUI Crashes 23% As September Unleashes Market Panic—Is A
Comeback Possible? One of the most notable developments for the
community is the enhanced protocol awards system that is expected
to encourage more validators to the platform. The protocol will
continuously emit a predefined number amount of POL, distributing
it to the all active validators. This acts as the base reward for
the platform’s validators. Polygon CDKs are being shipped to
mainnet AI clouds are transforming gaming Next-gen DeFi consumer
app en route All this and more – your DeFi roundup on @0xPolygon 🧵👇
pic.twitter.com/pjRkr1B9z6 — Polygon DeFi (@0xPolygonDeFi)
September 3, 2024 Validators will also have access to the chains’
transaction fees, becoming of the three main income streams in the
new system. Lastly, some chains within the ecosystem can set their
own rewards using POL, or any cryptocurrency available on that
specific chain, stimulating on-chain validator activity. On-chain,
the platform has also seen use of Polygon’s core development kit
(CDK) on multiple projects. These projects will have a definite
effect on the user experience of the platform, cementing Polygon’s
position within the DeFi world. Featured image from Pexels,
chart from TradingView
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