Polygon (MATIC) is currently facing uncertainty as it undergoes a token swap to the new POL token, resulting in potential delistings. However, despite this, a whale has been accumulating MATIC and withdrawing it from Coinbase. This whale's wallet now holds over 18.79M MATIC, valued at $6.2M, along with $54M in Ethereum.

Polygon remains a top layer 2 chain with a first-mover advantage but is struggling in the market. It still has over $1B in value locked and active versions of Uniswap and Aave. However, it faces competition from other more active layer 2 chains.

MATIC's price has weakened, and after reaching highs of $2.87, it is now back to the levels before its 2021 rally. The token is considered a utility token and is seen as a potential breakout token with a low entry point. However, there is limited interest in MATIC, and open interest is at three-year lows.

The migration from MATIC to POL is ongoing, but exchanges have already delisted ERC-20 versions of MATIC. The partially migrated POL tokens are trading at around $0.32, causing concern among investors. There is a possibility that Polygon may need to launch a new asset if both MATIC and POL fail to generate investment demand.

Polygon also faces challenges as a legacy chain and is losing users. In the past three months, active daily users have dropped from 1.2M to around 450K. Other chains offer similar features without the need to hold MATIC for gas fees. Polygon may launch Polygon 2.0 as a zero-knowledge layer 2 chain in the future.

If Polymarket slows down, Polygon could become a ghost chain, further impacting the price of MATIC or POL. Despite being one of the cheapest chains in terms of gas fees, this may not be enough to sustain Polygon's activity in the long term.



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