Polygon 2.0 Roll Out Begins, Is MATIC Set For A Major Surge?

Polygon Labs introduced at this time the roll out of their bold Polygon 2.0 implementation. The announcement, made through a tweet, marks the discharge of three pivotal Polygon Enchancment Proposals (PIPs) and an in depth roadmap for part 0. “The wait is over. Polygon 2.0 implementation kicks off now,” the tweet reads, signaling the start of a brand new period for the platform.

Earlier this summer season, Polygon Labs had unveiled their imaginative and prescient for Polygon 2.0, a roadmap that goals to scale Ethereum blockspace to create what they time period because the “Worth Layer of the Web.” This transformative imaginative and prescient guarantees limitless scalability and unified liquidity. To deliver this imaginative and prescient to fruition, a sequence of upgrades to the Polygon protocol structure are crucial. Part 0, introduced at this time, is step one on this route.

Part 0 focuses on 4 important upgrades to the protocol:

The transition from MATIC to POL.
Establishing POL because the native (fuel) token for PoS.
Designating POL because the staking token for PoS.
The introduction of the Staking Layer, a function that can empower validators to safe a various vary of chains throughout the evolving Polygon 2.0 ecosystem.

What Part 0 Of Polygon 2.0 Brings

Polygon Labs has indicated that if the neighborhood endorses these proposals, the implementation might start as early because the fourth quarter of this 12 months. It’s noteworthy that the modifications detailed within the first three PIPs are designed to be seamless, making certain no disruptions for end-users at this stage.

An official weblog submit, additionally launched at this time, supplies deeper insights into the transformative journey of Polygon 2.0, which was first launched to the general public in June. This set of proposed enhancements seeks to revolutionize practically each aspect of the Polygon ecosystem. The three PIPs launched at this time supply a complete blueprint for part 0. Their aim is to assemble a community of interconnected zero-knowledge-powered L2 chains, successfully scaling Ethereum to the huge expanse of the Web.

Central to those PIPs is the transition course of, the specs for the revamped token of the Polygon 2.0 structure, and essential updates to the Polygon PoS native token.

PIP-18, titled “Polygon 2.0 Part 0,” gives a complete overview of the preliminary part, detailing the upgrades that shall be additional elaborated upon in subsequent PIPs. The milestones of part 0 are crafted with the consumer in thoughts, making certain minimal disruptions for these already working on Polygon PoS and Polygon zkEVM chains.

In the meantime, PIP-17 delves into the intricacies of the POL token, outlining the related contracts that can oversee its emission and migration. The POL token is not only a brand new identify; it represents a next-generation token designed to accommodate an ecosystem of ZK-based Layer 2 chains, enabling staking, neighborhood possession, and governance.

Lastly, PIP-19 focuses on the transition of the native fuel token on Polygon POS from MATIC to POL. This transition is designed to make sure most compatibility with current techniques, with the native token’s properties remaining unchanged.

MATIC Value Evaluation

The MATIC worth at the moment stays in a downtrend channel that noticed its starting in mid-February this 12 months. MATIC hit its yearly excessive of $1.56 on February 13 and has fallen 68% since then. Nonetheless, a take a look at the 1-week chart exhibits that there’s hope for MATIC bulls.

On the time of writing, MATIC was buying and selling at 0.5184. All it might take to breathe new life into the MATIC worth is a transfer above $0.5855. This worth degree marks the 78.6% Fibonacci retracement degree, as well as, a transfer above this worth would signify a breakout from the downtrend channel. The bulls might regain the higher hand and goal the 20-week EMA at $0.7007.

One other key resistance degree is at $0.7698, the place the 200-day EMA is situated. An increase to this worth degree would already characterize a forty five% rally. As then, the 50% Fibonacci retracement degree at $0.9435 could possibly be focused by the bulls. Main promoting strain may also be anticipated at $1.27 (23.6% Fibonacci retracement degree) earlier than the yearly excessive can be inside attain.

Polygon 2.0 clearly has the potential to awaken the bulls from their slumber. Nonetheless, the $0.5855 worth degree is the crucial key. If MATIC fails at this worth degree, a sweep of 65-week low at $0.3177 might loom.

Featured picture from Admiral Markets, chart from TradingView.com