Polygon’s POL Upgrade Live On Ethereum Mainnet, MATIC To $1?
October 25 2023 - 11:00PM
NEWSBTC
After months of development and weeks after testnet deployment, the
POL upgrade is now live on the Ethereum mainnet. According to
an update on October 25, Polygon Labs, the team behind the
Ethereum sidechain, Polygon, said the move is a milestone for the
project. The team claims the release of POL “paves the way for the
next series of milestones in the Polygon 2.0 roadmap.” Polygon 2.0
Taking Shape: What’s In Store? The Ethereum sidechain continues to
build. Despite challenges in the last bear run, which saw MATIC,
the platform’s native currency, drop below $1 before crashing to
spot levels, the team announced the start of Polygon 2.0, reviving
developer activity. The primary objective of the upgrade is to make
the network more scalable, secure, and user-friendly. To achieve
this, Polygon will leverage a new consensus mechanism,
proof-of-stake liquidity (POSL), which the developer claims is more
efficient. Related Reading: Bitcoin Bounce Above $35,000 Puts
Holder Profitability At Yearly Highs Notably, the team is
developing key differences between this consensus system for
Polygon 2.0. For instance, validators must stake their native
tokens and liquidity to participate in the network. The
liquidity provided by participating validators will then be
channeled to boost the liquidity of its decentralized exchanges
(DEXes). Subsequently, once Polygon 2.0 goes live, exchanges
running on the sidechain will be more liquid, meaning users can
easily swap tokens in a low-fee, highly scalable environment.
Will MATIC Bulls Break $1? Moreover, POL will be critical for
Polygon 2.0. With the token now being initiated on the Ethereum
mainnet, Polygon Labs is jump-starting the process, setting the
ball rolling for POL, which the team said will “power a vast
ecosystem of ZK-based layer-2 chains.” The team claims POL is
a “hyperproductive token” primarily designed to power a multichain
ecosystem. Besides, the token will be used to settle fees, and
holders will participate in governance. At the same time, those who
choose to stake it will be paid in the token. Related
Reading: Solana Epic Bounceback To Pre-FTX Heights: Brace Yourself
For What’s Next Still, it is not clear whether this update will
support MATIC prices in the long run. At present, the $1
psychological level remains elusive. Looking at price charts,
MATIC is already up 30% from October 2023 lows and continues to
unwind losses. Moreover, bulls have reversed the dump of October 17
and continue to power higher. From the daily chart, bull bars
are banding along the upper BB, a volatility indicator. This
suggests that the underlying momentum is building up, favoring
optimistic buyers. Feature image from Canva, chart from TradingView
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