Polygon's POL Token Gains 2.551% Amid Network Growth

POL (ex-MATIC)'s latest price was $0.2709, down 2.551% in the last 24 hours. The transition from MATIC to POL has been a significant milestone for Polygon, marking the beginning of a new era for the network. The migration process has been smooth, with almost 97% of MATIC holders having already transitioned to POL. This shift is crucial as it removes selling pressure from the old token and solidifies POL's role in the Polygon 2.0 roadmap. The transition has been supported by strong network growth, which has been a driving force behind the recent momentum.

One of the key developments in the Polygon ecosystem is the addition of Tether's USDT and XAUt (gold-backed tokens) to the network. This move strengthens liquidity on the Polygon blockchain, making it more attractive for users and developers. The total value locked (TVL) in Polygon surged to $1.23 billion in August, marking a 43% increase since the start of the year. DeFi protocols like QuickSwap and Polymarket have been leading the inflows, contributing to the overall growth of the network.

Despite the positive developments, retail engagement has not fully matched the growth in TVL. Weekly active addresses have slipped to about 2.2 million, indicating that there is still room for improvement in user participation. However, the overall trend remains bullish, with higher lows forming since mid-August. This suggests that the trend is leaning bullish in the short term, and the network is poised for further growth.

Looking ahead, the focus is on whether POL can break through key resistance levels and sustain its momentum. Upcoming developments such as AggLayer v0.2 and Polygon's AI tools could serve as catalysts for adoption if they gain traction in the third quarter. These developments are part of Polygon's broader strategy to enhance its scalability, security, and interoperability, making it a more competitive player in the blockchain space.

Recent market activity surrounding the token formerly known as MATIC, now designated as POL, has garnered attention for its divergence from broader market trends. Observations indicate that within the Layer 2 blockchain sector, which experienced an overall downturn, POL demonstrated significant counter-movement, registering a notable increase in value relative to its peers. This performance highlights activity and interest specifically focused on this token amidst sector-wide challenges.

Technical indicators and market metrics suggest a phase of increased activity for POL. Recent analysis points to heightened trading volumes relative to the circulating supply, a factor often interpreted as reflecting strong investor participation and liquidity. Furthermore, metrics indicate the token entered territory considered significantly oversold according to its Relative Strength Index (RSI), potentially signaling a shift in market dynamics following a period of pronounced selling pressure. This technical positioning, combined with active trading volume, suggests a period of reassessment regarding the token's network positioning.

Market commentary acknowledges POL's transition from its previous MATIC branding. Analysis dated early September 2025 describes the token as emerging from an extended period of relatively subdued activity into a more dynamic phase. This observation focuses on the shift in market behavior and engagement with the token following its rebranding, rather than predicting its future path.

The overall landscape for Layer 2 solutions showed signs of contraction recently. Despite this general downward pressure affecting most significant tokens within the sector, POL presented a contrasting pattern. Its performance, characterized by a substantial gain during the sector's decline, stands out as a notable exception, drawing focus to its specific market activity and investor behavior during that specific timeframe. This divergence underscores unique factors potentially influencing POL compared to the broader Layer 2 ecosystem.

The community has shown strong support for the change from MATIC to POL. As the network continues to grow and evolve, it is expected to attract more users and developers, further solidifying its position as a leading blockchain scaling solution. The network is poised for further growth, and upcoming developments could serve as catalysts for adoption. While retail engagement has not fully matched the growth in TVL, the overall trend remains bullish, and the network is well-positioned to continue its momentum in the coming months.