From MATIC to POL: Will POL Price Explode?

On September 4, 2024, Polygon introduced its new native token, POL, marking a major shift from the existing MATIC token. This upgrade was part of Polygon’s strategy to grow from a single proof-of-stake (PoS) network into a wider ecosystem of blockchains powered by zero-knowledge (ZK) technology. Let’s take a look at this Matic Price article in more detail.

How has the Polygon (MATIC) Price Moved Recently?

Polygon (MATIC) is currently priced at $0.379371, with a 24-hour trading volume of $95.49 million, a market cap of $1.73 billion, and a market dominance of 0.08%. Over the past 24 hours, the price of MATIC has risen by 0.65%.

Polygon hit its peak price of $2.91 on December 27, 2021, marking its all-time high. Its lowest recorded value occurred on May 9, 2019, when it dropped to $0.003049. Since reaching its all-time high, the lowest price MATIC has seen is $0.322074, and the highest price since that low was $1.55935. Current sentiment around Polygon remains bearish, with the Fear & Greed Index reflecting a score of 32, indicating fear in the market.

There are currently 4.56 billion MATIC in circulation out of a maximum supply of 10 billion. The yearly supply inflation rate stands at -42.99%, which means 3.44 billion fewer MATIC tokens were created over the past year.

MATIC Transitions to POL: Will POL Price Explode?

The shift from MATIC to POL on September 4, 2024, marked a major milestone in Polygon’s evolution, transitioning from a single-chain network to a broader, aggregated ecosystem. This upgrade is not just a token swap but a strategic move towards enhanced scalability, security, and multi-chain integration through the AggLayer technology. 

POL takes over MATIC’s role for staking and gas fees, but its additional features, such as multi-chain staking and improved governance, provide more opportunities for network participation and earning rewards. This expanded utility makes POL highly attractive to both existing and new investors, suggesting the potential for significant price growth in the near term.

Market experts, like Brian Quinlivan, emphasize that POL’s multi-chain staking is set to strengthen network security while offering new revenue streams. As this feature becomes more widely adopted, it could draw in greater investment and drive demand for POL. 

However, its tokenomics include a 2% annual emission rate over the next decade, which will increase the total supply. While this may slow immediate price surges, it ensures long-term network sustainability by funding security and ecosystem growth.

In the short term, POL’s price growth will depend on how well the ongoing migration is received by traders and how quickly Polygon’s technology advancements, like zero-knowledge rollups, are implemented. 

With over 6.5 billion tokens already migrated, the initial response has been strong, but future gains will hinge on the 2025 launch of the staking hub and the network’s ability to unify liquidity across its ecosystem. If these developments unfold as expected, POL could experience substantial price increases, securing its place as a leading token in the evolving blockchain landscape.