- $POL will now replace $MATIC as Polygon’s native token, adding utility like restaking.
- BitMex closed all positions in MATICUSDT & MATIC/USDT ahead of the $POL migration.
- $MATIC holders on the Polygon PoS chain will not need to take any action before the migration. However, those holding $MATIC on Ethereum or zkEVM will need to take some action to upgrade their tokens.
Polygon Labs is migrating from its original $MATIC token to $POL today as a key part of its ‘Polygon 2.0’ roadmap. $POL now becomes the Polygon proof-of-stake (PoS) network’s native gas and staking token.
Read on to discover more about why Polygon is moving to $POL and what you need to do if you’re holding $MATIC before the migration.
$POL vs $MATIC – Expanded Utility
According to Polygon’s July post, the migration further expands the utility of its native token. Polygon blockchain validators can earn additional rewards by restaking $POL to secure multiple chains in the Polygon supernet.
$POL provides secure access to other blockchains, including Layer-1 (L1) and Layer-2 (L2), in Polygon’s broader ‘aggregated’ network, known as AggLayer. The AggLayer is a core component of Polygon’s roadmap for its transformation into a zero-knowledge Ethereum Virtual Machine (zkEVM) system, ensuring ‘safety for near-instant cross-chain transactions.’
Developers can connect ZK-secured L1 and L2 chains to the AggLayer and build a Web3 network that feels like a single chain with practically unlimited scalability.
Although $MATIC remains at bear market level, the migration is generating optimism among analysts. Blockchain analytics platform Santiment shared a chart on X highlighting on-chain activity on Polygon.
📊 Polygon has been among the many networks declining since crypto’s retrace began back in March. However, a notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon. Active addresses and dormant coin spikes are common signals preceding this. pic.twitter.com/RY5NXe10ZW
— Santiment (@santimentfeed) August 28, 2024
So, what do you have to do to convert your $MATIC? Well, that depends on where you’re holding them:
- On the Polygon PoS chain: Your tokens will be converted automatically to $POL.
- On Ethereum: Use Polygon Portal’s Interface to migrate your $MATIC to $POL, per Polygon’s post.
- On the Polygon zkEVM L2 network: Use Polygon Portal to bridge them to Ethereum and upgrade your tokens to $POL.
- ERC-20 tokens in a hardware wallet: Manually convert your $MATIC to $POL using your wallet’s currency settings.
Can $POL Migration Reverse the Downtrend?
BitMEX had delisted MATICUSDT and MATIC/USDT trading pairs by September 3 and asked users to withdraw their $MATIC from BitMEX wallets.
According to BitMEX’s blog, the crypto trading platform will no longer support $MATIC or $POL on ERC-20 but will enable support of $POL on Polygon.
Polygon $MATIC trading is near its multi-year low, at $0.3706 as of writing. It is crucial for $MATIC to maintain its current critical support level for the token’s short-term stability.
Parting Thoughts
Investors are watching closely to see if the upgrade becomes a catalyst that reverses the recent downtrend.
Will the $POL migration create more trading opportunities and potentially impact the overall ecosystem scalability? We’ll have to wait and see in the coming months.
References
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