Polygon, the Ethereum sidechain, recently upgraded its infrastructure, marking the beginning of its migration into a new era of scaling, as emphasized by their Polygon 2.0 mission. Despite the current struggles with POL prices, on-chain data suggests a robust ecosystem that could potentially support prices in the medium to long term.
According to data aggregated from DeFiLlama, an analytic platform, and the Aggregation Layer, a core hub for Polygon, the sidechain has processed over $214 billion in decentralized exchange volume since the beginning of the year. Additionally, it has enabled the addition of $102 billion worth of assets through centralized exchanges like Binance and Coinbase. These impressive figures highlight the platform’s popularity even amidst the availability of other layer-2 alternatives and its capacity to handle large-scale transactions securely.
The Aggregation Layer, also known as the AggLayer, is anticipated to further boost liquidity and general utility on the platform. The AggLayer is central to Polygon’s mission to scale Ethereum while connecting all layer-2 technologies built using its framework. The goal is to enhance the utility of POL while ensuring that all layer-2 connections have instant liquidity access.
Despite these advancements, POL prices remain under pressure. Following the upgrade from MATIC to POL on September 4, the new token is expected to play a significant role. POL will not only be utilized to reward validators who stake but also to secure other platforms linked via the AggLayer. These expanded functionalities aim to support bullish sentiments as the sidechain continues its scaling objectives.
Polygon’s focus on scaling without compromising security is likely contributing to its rising adoption rates. Recently, the Italian government issued a €25 million digital bond on Polygon PoS. Meanwhile, financial giants like Franklin Templeton, Ondo, and Spiko are leveraging Polygon technology to tokenize United States Treasuries, as per RWA.xyz data.
Nevertheless, POL is currently struggling in the market. After the anticipated migration, the token’s value decreased, finding support at $0.35. Bears have the upper hand until there is a significant close above the descending channel and $0.60.
