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According to on-chain analytics firm Santiment, Polygon’s on-chain activity is skyrocketing and large inactive wallets are suddenly springing to life.
Santiment noted that Polygon is among the many networks that have been declining since the crypto market began to decline in March, but recent evidence from on-chain data suggests that this trajectory may soon change, with MATIC seeing a surge in on-chain activity.
Recent data provided by Santiment shows that 69 billion MATIC was consumed in a dormant coin movement spike, with 3,369 MATIC addresses interacting on the network, marking the second-highest day of the year. It further stated that a significant increase in on-chain activity could be a sign that a MATIC reversal could be on the horizon.
According to Santiment, active addresses and the dormant coin spikes that Polygon (MATIC) is currently exhibiting are common signals that often precede a market reversal.
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At the time of writing, MATIC was down 1.15% in the last 24 hours to $0.442 and down 84.83% from its all-time high of $2.92 in December 2021. In the coming days, the market will be watching closely to see if this increase in on-chain activity translates into a bullish reversal in MATIC price.
Countdown to the eagerly awaited POL upgrade
The increase in on-chain activity coincides with anticipation of the major POL upgrade scheduled for September 4.
On September 4, the long-awaited upgrade from MATIC to POL continues. In the initial phase, POL will replace MATIC as the native gas and staking token for the Polygon PoS network. In the following phases, POL will play an important role in the AggLayer.
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Holders of MATIC on Ethereum, Polygon zkEVM and centralized exchanges may need to migrate. For this purpose, a Polygon portal interface has been introduced.
In the meantime, all MATIC on Polygon PoS and staked MATIC on Ethereum will be automatically upgraded on September 4. Holders of MATIC on Polygon PoS do not need to take any action, nor do MATIC stakers and delegators on Ethereum.
POL, a fully community-driven upgrade, further extends the utility of Polygon’s native token to reflect and advance Polygon’s vision as an ever-growing network of aggregated blockchains.
