Polygon crypto 2.0 improve: What does it imply for the ecosystem?

• The POL migration was a key step towards the goal of Polygon 2.0.
• The on-chain metrics confirmed excessive token motion.

Polygon [MATIC] noticed a technical improve go stay on the 4th of September that noticed its token develop into the Polygon Ecosystem Token [POL].

MATIC tokens held on the Polygon community could be upgraded 1:1 to POL, whereas the MATIC in Ethereum [ETH] sensible contracts might want to manually work together with the migration contract to improve to POL.

The final word imaginative and prescient for Polygon is to unite the Web3 area, together with the totally different blockchain networks. It goals to try this utilizing the AggLayer, or the aggregation layer.

Polygon connecting the entire crypto area

The aggregation layer is just like a cross-chain interoperability program. Nevertheless, not like such applications, the AggLayer received’t be ecosystem-specific. It goals to attach all L1s, and L2s, to convey all of them collectively to unify all blockchains.

In that pursuit, the technical improve and migration have been a key element of the Polygon crypto 2.0 goal. This could improve safety and scalability and convey zero-knowledge proof aggregation from the linked chains. This issue boosts privateness as effectively.

The customers of various L1 blockchains endure from fragmentation and are compelled to bridge between blockchains to make use of them. This blockchain isolation has existed for years and means they haven’t any manner of speaking with each other.

The Polygon crypto AggLayer will, amongst different issues, eliminate the necessity for third-party protocols for this cross-chain interoperability problem, lowering vulnerabilities.

Impact of the technical improve on sentiment

Supply: Santiment

The day by day energetic addresses metric trended downward over the previous two weeks. The community progress has decreased in August in comparison with July however the development of the previous month was steady.

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There was a big spike in dormant circulation on the third of September, which normally signifies promoting exercise.

A value drop from $0.41 to $0.367 was seen inside 24 hours of that bounce. One other wave of promoting was within the making.