Polygon crypto 2.0 upgrade: What does it mean for the ecosystem?

    The POL migration was a key step toward the aim of Polygon 2.0.
    The on-chain metrics showed high token movement.

As a researcher with years of experience in the cryptosphere, I find myself continually amazed by the transformative power of blockchain projects like Polygon [MATIC]. The recent technical upgrade and subsequent migration to POL was indeed a key step toward Polygon 2.0’s ambitious goal of unifying the Web3 space.


On September 4th, there was a technological enhancement launched for the Polygon [MATIC], which subsequently transformed its token into the Polygon Ecosystem Token [POL].

As an analyst, I’d articulate it this way:

As a Polygon analyst, my personal objective is to foster unity across the decentralized Web3 realm, encompassing diverse blockchain networks. To achieve this, I strive to leverage the power of the Aggregation Layer, or simply, the AggLayer, as our primary tool for unification and interoperability.

Polygon connecting all of the crypto space

The Aggregation Layer functions much like a universal cross-chain interaction platform, but unlike these specific ecosystem programs, it isn’t limited to a single environment. Instead, its purpose is to bridge all L1 (Layer 1) and L2 (Layer 2) networks, uniting them under one umbrella to create a harmonious blockchain ecosystem.

In this endeavor, the technical update and transition played a crucial role in Polygon’s vision for crypto 2.0. This upgrade aimed to improve security and scalability while incorporating zero-knowledge proof consolidation from associated networks. This aspect also contributes significantly to ensuring privacy.

Users of various initial-language blockchains experience fragmentation, requiring them to traverse bridges between different blockchains to utilize them. The isolation of these blockchains has persisted for quite some time, resulting in an inability for them to interact or communicate directly.

The Polygon crypto’s AggLayer aims to solve the cross-chain interoperability problem by eliminating the reliance on external protocols, thereby decreasing potential security risks.

Effect of the technical upgrade on sentiment

Polygon crypto 2.0 upgrade: What does it mean for the ecosystem?

Over the last fortnight, the number of daily active addresses showed a decline. Although the network expansion in August was lower than in July, the trend from the past month remained consistent.

Is your portfolio green? Check the Polygon Profit Calculator

On the 3rd of September, there was a significant increase in dormant trading, a phenomenon often associated with increased selling actions.

Within a 24-hour period following that increase, the price decreased from $0.41 to $0.367, indicating a potential surge in sellers.

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2024-09-10 11:03