Polygon Labs made a significant announcement on Wednesday, revealing the successful launch of the POL token upgrade on the Ethereum mainnet. This upgrade is a pivotal step in implementing the Polygon 2.0 roadmap, which aims to scale Ethereum and create the Value Layer of the Internet.
The POL token, a next-generation digital asset, is central to this ambitious roadmap. It empowers a wide-ranging ecosystem of Zero-Knowledge (ZK)-based Layer 2 (L2) chains through a native re-staking protocol.
This innovation allows POL token holders to validate multiple chains and take on various roles on each of these chains, transforming POL into a hyperproductive token. The achievement of this milestone is the result of extensive development efforts, community involvement, and a successful testnet launch.
Sneak Peek at Polygon 2.0’s Future
The deployment of the POL token upgrade sets the stage for several exciting developments in the Polygon 2.0 roadmap. Among these milestones are the launch of a new staking layer to support Polygon L2s, an upgrade of Polygon Proof of Stake (PoS) to zkRollup, and the implementation of an advanced, ZK-powered interoperability and shared liquidity protocol for all L2s.
Polygon’s journey towards POL token integration began in September with the migration of MATIC tokens to POL. Three network Improvement Proposals (PIPs) were introduced, with PIP-18 outlining Phase 0 plans to construct a network of interconnected ZK-powered L2 chains, essentially scaling Ethereum to internet-like proportions.
This initiative involves transitioning from MATIC to POL tokens as the native token for Polygon PoS and the staking token for Polygon PoS.
MATIC Price Analysis and Future Prospects
Amid these developments, the price of MATIC has experienced heightened volatility. Traders have been booking profits following a recent rally that pushed MATIC to highs last witnessed in mid-August at approximately $0.65.
The cryptocurrency currently ranks 14th in market capitalization, boasting $5.8 billion, just behind Chainlink (LINK) with $6.2 billion. At present, MATIC’s price is treading carefully, finding support at key levels marked by the 21-day Exponential Moving Average (EMA) at $0.562 and the 100-day EMA at $0.599.
The Relative Strength Index (RSI) indicates buyer strength with a value of 70 on the daily chart. The anticipation of the Polygon 2.0 upgrade shortly has the potential to boost sentiment, thereby increasing demand for MATIC from investors who are eyeing the POL airdrop.
With these factors in play, the prediction for MATIC’s price to rally above $1 appears to be quite conservative, as gains could potentially surge to an all-time high of $2.92 in the coming weeks.
Related Reading | Crypto Market Loses $119B In Q3 2023