Polygon (MATIC) Signals Potential Price Reversal as On-Chain Activity Surges Ahead of Rebranding to POL

Some recent on-chain metrics suggest that Polygon (MATIC) might be on the verge of a price reversal. This insight comes from the crypto analytics firm Santiment.

Santiment points out that there’s been a noticeable increase in active addresses and movement of dormant coins related to MATIC. This could be a sign of change.

“Polygon has faced a decline since the crypto market started to retrace back in March. However, the recent spike in on-chain activity might indicate that a reversal for MATIC is coming soon. Spikes in active addresses and dormant coin movements often precede such shifts,” the firm explains.

As of now, MATIC is trading at $0.423. It ranks 28th among cryptocurrencies by market cap and has dropped more than 2% in the last 24 hours.

The uptick in Polygon's on-chain activity aligns with an upcoming rebranding scheduled for September 4th. The new POL token will replace MATIC as the native gas and staking asset for the chain.

This rebranding, first proposed last July, is part of the transition to Polygon 2.0. The goal is to establish the project as the “value layer of the internet.”

Polygon Labs co-founder Sandeep Nailwal stated last year that POL is designed to “deliver the benefits of multi-chain staking without the added risks of restaking.”

“With the Polygon 2.0 proposal, the Polygon Ecosystem will expand from a single chain into a network of Layer 2 solutions that can easily interoperate and share liquidity,” he added.