MATIC falls 5% as Polygon Labs activates next-gen POL token on Ethereum mainnet
Polygon's MATIC is down by around 5% during the last 24 hours, according to CryptoSlate's data.
Polygon Labs has deployed the contract for its new POL token on the Ethereum (ETH) mainnet.
POL is positioned as a next-generation hyperproductive token that will replace MATIC and is designed to play a significant role in the forthcoming Polygon 2.0 upgrade.
“POL will power a vast ecosystem of zero knowledge-based Layer 2 chains via a native re-staking protocol that allows holders to validate multiple chains and perform multiple roles on each of those chains,” said Polygon Labs.
The upgrade does not change the systems on the Polygon proof of stake (PoS) or Polygon zero-knowledge Ethereum Virtual Machine-based (EVMs) networks, as they will continue to work as previously designed.
The team further explained that the POL upgrade sets the stage for the following milestones in its Polygon 2.0 roadmap, which include:
“[The launch of] a new staking layer to power Polygon L2s, upgrading Polygon PoS to zkRollup, and implementing an advanced, ZK-powered interoperability and shared liquidity protocol for all these L2s.
In June, Polygon Labs revealed plans for its Polygon 2.0 upgrade, which would see the network become the “Value Layer of the Internet.” According to the team, this upgrade will improve Polygon’s ecosystem security, scalability, and support through its POL token.
Data provided by CryptoSlate shows that the native token of the Layer 2 network, MATIC, has experienced a decline of approximately 5% over the past 24 hours to $0.63223 as of press time.
This decrease in MATIC’s price aligned with the broader performance of the crypto market, which has seen values recede for the major digital assets, including Bitcoin and Ethereum. However, MATIC is not experiencing the same recovery seen by Bitcoin as of press time.
Over the week, the industry saw a surge in optimism about the possibility of approving an exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), driving BTC and other cryptocurrencies prices to new highs.