- Polygon announces MATIC to POL migration for September 4.
- Transaction volume hits multi-month low, but DeFi sector shows strength.
- MATIC price remains muted at $0.41, with potential for movement to $0.55 or $0.33.
Polygon, Ethereum’s premier scaling solution, finds itself at a critical juncture as it prepares for a major milestone: the migration of its MATIC token to POL, scheduled for September 4.
Polygonscan data reveals a stark decline in network activity, with total transactions on the Polygon Proof-of-Stake chain plummeting to 2.44 million on Sunday—a low not seen since December 2023.
This precipitous drop in user engagement likely stems from uncertainty surrounding the impending token migration, as users adopt a wait-and-see approach before conducting transactions.
Polygon shows a modest price gain
The muted price action of MATIC reflects this period of user hesitation, with the token trading at $0.42 and showing only a modest 3% gain over the past 24 hours.
Despite a surge in trading volume, the overall market sentiment remains cautious as participants grapple with the implications of the MATIC to POL transition.
Intriguingly, amidst this broader slowdown, Polygon’s decentralized finance (DeFi) sector has demonstrated remarkable resilience. Sunday witnessed notable spikes in both total value locked (TVL) and decentralized exchange (DEX) trading volume, signaling sustained interest from a subset of users.
Artemis data shows a 5% increase in TVL to $859 million, accompanied by a 21% surge in daily DEX trading volume, which currently stands at $69 million.
From a technical analysis perspective, MATIC’s 12-hour chart reveals an emerging bullish sentiment despite the overall price stagnation. The Relative Strength Index (RSI) is trending upwards, poised to breach the 50-neutral line—a development that could signal a shift from bearish to neutral or even slightly bullish momentum.
