Ethereum layer-2 solution Polygon’s POL smart contracts debuted on the Ethereum main-net. Analyst Jhon Isıge evaluates that this development may cause an explosion in the altcoin price.
A hyper-productive token is coming: POL
Polygon Labs announced the launch of the POL token upgrade on the Ethereum main-net as part of the roadmap to the final release of the Polygon 2.0 software upgrade. The idea behind this new protocol is to scale Ethereum and usher in a new era of building a “Value Layer of the Internet”. In this context, altcoin Polygon developers made the following statement:
POL is a next-generation token that can power a broad ecosystem of ZK-based L2 Blockchains. It does this through a native re-staking protocol that allows POL holders to validate multiple Blockchains and play multiple roles on each of those Blockchains. Additionally, it turns POL into a hyper-yield token.
Polygon will disable MATIC when it releases POL. Additionally, it will become the native token that powers the new ecosystem. Development efforts to create this Value Layer of the Internet have been ongoing for months. Therefore, the debut of POL Smart contracts on the Ethereum main-net is no small feat as it received “extensive community consultation and a successful test-net launch.”
Final steps: Preparing for the Polygon 2.0 upgrade
Although the POL token has been deployed on the main-net, it will not replace MATIC immediately. Such a change requires approval from the management of the altcoin project. Developers also need to synchronize with the rollout of the Polygon 2.0 upgrade.
According to Polygon Labs, the final upgrade consists of several steps. These are: Initiating a new staking layer to feed the Polygon Layer 2 Blockchain. Migrating polygon proof-of-stake to zkRollup. Additionally, implementing a ZK-powered interoperability and shared liquidity protocol for all Layer 2s.
As the MATIC rally takes a breather, what will the altcoin price do?
Polygon (MATIC) price rose last week to mid-August highs of $0.65. After that, it is on shaky ground as traders book profits. Meanwhile, the altcoin price broke out of a falling wedge pattern supported by the $0.5 support. MATIC price is holding above two important levels provided by the 21-day Exponential Moving Average (EMA) (red) at $0.562 and the 100-day EMA (blue) at $0.599. If the bulls maintain support, especially at the 100-day EMA, the uptrend will continue amid calls for a sharp move above $1. The Relative Strength Index (RSI) reveals that buyers have the upper hand with strength at 70 on the daily chart.
Another breakout is expected to close the $1 gap. But first the bulls need to overcome the seller squeeze at $0.65 and the next hurdle at $0.7, the 200-day EMA (purple). Sentiment will continue to increase in the coming weeks as the Polygon 2.0 update approaches. It is possible that this will increase demand for MATIC from investors watching the POL airdrop. With this in mind, the prediction that the altcoin price will rise above $1 is extremely conservative. Because earnings are likely to skyrocket to an all-time high of $2.92.
The price predictions in the article belong to the analyst and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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