Certain on-chain metrics suggest that blockchain scaling solution Polygon (MATIC) could be on the verge of a price reversal, according to the crypto analytics firm Santiment.
Santiment notes MATIC recently witnessed a spike in active addresses and dormant coin movement.
“Polygon has been among the many networks declining since crypto’s retrace began back in March. However, a notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon. Active addresses and dormant coin spikes are common signals preceding this.”
MATIC is trading at $0.423 at time of writing. The 28th-ranked crypto asset by market cap is down more than 2% in the past 24 hours.
Polygon’s on-chain activity has been spiking as the project prepares for an imminent rebrand scheduled for September 4th. The new POL token will replace MATIC as the chain’s native gas and staking asset.
First proposed last July, the rebrand is part of the network’s transition to Polygon 2.0, which aims to establish the project as the “value layer of the internet.”
Polygon Labs co-founder Sandeep Nailwal said 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 to an ecosystem of L2s that can easily interoperate and share liquidity with each other.”
Generated Image: Midjourney