Coinbase Resumes Trading For New Polygon Token, POL Price Rally Ahead?

Coinbase has officially resumed support for Polygon following the platform’s transition from MATIC to its new governance token, POL. After temporarily halting Polygon-related transactions to accommodate the migration, the U.S.-based crypto exchange announced today, that users could now send, receive, and trade Polygon under the new POL ticker.

Coinbase Enables Transactions For POL After Ticker Change

In a recent post on the X platform, Coinbase announced it had restored services for Polygon after completing the migration from MATIC to POL. The exchange had paused transactions involving Polygon on August 26, 2024, to facilitate the transition to the new governance token.

Following the migration, users can now send, receive, and trade the token under the new POL ticker across all regions.

The migration was part of Polygon’s roadmap to upgrade its ecosystem by transitioning to POL as the official token for paying transaction fees and staking within the network’s Proof-of-Stake (PoS) mechanism. However, MATIC stakers will continue receiving rewards for their ongoing staking cycles until their completion.

Impact of The Migration on Polygon Network

The switch from MATIC to POL was intended to streamline governance and staking on the Polygon network, as POL is set to become the standard for staking. However, despite the news of Coinbase resuming support, POL has experienced market challenges. 

After an initial 10% price surge following Coinbase’s support announcement, the POL token has since struggled, reflecting broader market trends. It has dropped 12% over the past month and is currently down 71% from its yearly high in March 2024.

As of September 11, POL ranks 30th by market cap, valued at approximately $2.5 billion, with a current price of $0.378. The token’s price volatility continues as the market adjusts to the effects of the migration and general market conditions.

POL Price Shows Strength Amid Migration

Following the news, POL price has shown signs of recovery, with the Moving Average Convergence Divergence (MACD) indicator on the daily chart showing a momentum shift. The MACD histogram reveals a diminishing bearish trend, as the red bars have reduced in size. This further supports the possible declining selling pressure. 

Additionally, the MACD line appears to be approaching a bullish crossover with the signal line. This could signal a shift towards upward momentum if sustained. The volatility indicates a market reacting to the transition of MATIC to POL, with buyers stepping in as the token stabilizes.

More so, most recently, Coinbase stock also experienced positive movement sparking investor bullishness on Brett, Degen and Toshi. This increase was partially attributed to the growing success of Coinbase’s Base Layer 2 (L2) network.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. His work includes notable contributions to Cryptopolitan and Coingape News Media, where he shares his insights on the latest developments in the cryptocurrency market. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.