MATIC Surges 10% as Polygon’s 2.0 Upgrade Draws Closer
MATIC, the native token of Ethereum scaling solution Polygon, has jumped 10% from Monday’s low of $0.67 as traders anticipate the upcoming Polygon 2.0 upgrade. The crypto is currently changing hands at $0.73 following a 62% increase in daily volume on Tuesday, with $500 million being traded over the past 24-hours, according to CoinMarketCap.
Polygon revealed plans for its 2.0 version last month with aims of creating “the value layer of the internet.” It also said that it will transition to greater community governance of the protocol and treasury in a blog post.
Matic’s aggregated open interest, which is a metric used to assess the nominal value of open derivatives positions, has experienced an even larger uptick over the past 24-hours, rising from $109 million to $160 million, or 47%, according to Coinalyze. That big jump suggests that the rally is being backed with leverage.
It’s worth noting that highly-anticipated news events like upgrades can cause volatile price action as an imbalance of leveraged positions have the potential to get squeezed after the event takes place, with astute traders looking to capitalize on unsustainable levels of optimism. Ethereum’s Shanghai upgrade was an example of this, with prices rising by 16% in the lead-up to the event before returning to parity less than a week later.
Key Points:
- MATIC, the native token of Polygon, surged 10% from Monday’s low of $0.67 ahead of the anticipated Polygon 2.0 upgrade.
- Currently trading at $0.73, MATIC saw a 62% increase in daily volume on Tuesday, with $500 million being traded over the past 24-hours.
- Polygon’s 2.0 version aims to establish “the value layer of the internet” and implement greater community governance.
- Matic’s aggregated open interest rose from $109 million to $160 million (47% increase) over the past 24-hours, indicating strong backing with leverage.
- Highly-anticipated news events like upgrades can lead to volatile price action, with traders capitalizing on potential imbalances in leveraged positions.
- Ethereum’s Shanghai upgrade had a similar impact, with a 16% price rise before returning to parity within a week.
