Why did the price of POL go up?

Polygon (POL) increased by 1.44% in the last 24 hours, slightly outperforming the overall crypto market, which rose by 0.9%. This growth comes after recent network improvements and new partnerships, although POL is still down 11.86% over the past week.

1. Growing Institutional Interest – Expansion into the Middle East through a partnership with Cypher Capital (Sept 12)
2. Network Stability Restored – Fixing a node bug helped recover confidence after a 4% price drop (Sept 10-11)
3. Token Migration Progress – Nearly 98% of MATIC tokens have been upgraded to POL, reducing old token supply

Deep Dive

1. Expanding Institutional Access (Positive for POL)

What happened: Polygon Labs teamed up with Cypher Capital, a UAE-based investment firm, on September 12 to make it easier for Middle Eastern institutions to invest in POL. This includes customized strategies to earn yields and improve liquidity.

Why it matters:

• The Middle East is becoming more open to cryptocurrencies, and this partnership aims to attract long-term investments from the region (Cypher Capital)
• This follows Polygon’s recent integration of native staking on Ethereum (completed September 3), which makes POL more attractive by offering real earning potential

What to watch: Look for increased trading and holding of POL by Middle Eastern institutions and exchanges.

2. Network Stability Issues and Recovery (Mixed Impact)

What happened: On September 10, a bug in Polygon’s network nodes caused transaction delays of 10-15 minutes, leading to a 4% drop in POL’s price. The development team quickly fixed the issue with updates on September 10-11.

Why it matters:

• The initial price drop showed concerns about network reliability, but the fast fix reassured investors
• After the fix, POL’s price recovered by 2%, and key decentralized apps like Polymarket returned to normal (Cryptonews)

What to watch: Monitor how many validators are active and how quickly transactions are confirmed.

3. Near Completion of MATIC to POL Token Migration (Positive for POL)

What happened: As of August 20, 97.8% of the old MATIC tokens have been successfully upgraded to POL, according to Polygon’s official data.

Why it matters:

• This reduces the supply of the older MATIC tokens, which still have about $230 million circulating
• POL now fully controls transaction fees and staking rewards, making the token’s use more efficient and valuable

Conclusion

POL’s recent gains are driven by growing institutional interest and a quick technical recovery, though broader market challenges remain (Fear sentiment index: 32). Keep an eye on continued investment from the Middle East and the final steps of the MATIC to POL migration.

Key point to watch: Will POL stay above its 200-day simple moving average ($0.2236)? Holding this level could signal a positive trend reversal.

What could affect the price of POL?

Polygon (POL) is currently navigating between promising technical improvements and ongoing market uncertainties.

1. Growing Institutional Interest – A new partnership in the Middle East is expected to increase liquidity and strengthen the network.
2. Technical Upgrades – The GigaGas plan aims to boost transaction speeds to 5,000 per second by October 2025.
3. Regulatory Challenges – India’s approach to stablecoins and ongoing U.S. regulatory reviews could affect Polygon’s use cases.

In-Depth Analysis

1. Institutional Adoption in the Middle East (Positive Outlook)

Summary: Polygon recently partnered with Cypher Capital (September 12, 2025) to attract institutional investments through yield strategies and improved liquidity. The Middle East is becoming a crypto-friendly region, with daily trading volumes exceeding $112 million, indicating strong demand.

Why it matters: This partnership could reduce selling pressure by encouraging institutions to hold and stake POL tokens. Similar collaborations, like Bitso’s listing of POL in 2024, led to a 34% increase in network activity within three months (Cypher Capital).

2. GigaGas Throughput Upgrades (Mixed Signals)

Summary: The Bhilai upgrade in June 2025 raised Polygon’s transaction capacity to 1,000 transactions per second (TPS), with plans to reach 5,000 TPS by October. However, a software bug on September 10 caused delays of 10 to 15 minutes in transaction finality, briefly dropping POL’s price by 4%.

Why it matters: While faster transaction speeds could attract decentralized finance (DeFi) and real-world asset projects, technical glitches risk shaking developer confidence. The September update fixed the issue, but the Relative Strength Index (RSI) at 29.53 indicates cautious market sentiment.

3. Regulatory Headwinds (Potential Risks)

Summary: India’s delay in establishing stablecoin regulations (reported September 11, 2025) poses a threat to Polygon’s payment applications, which currently support over 11 million peer-to-peer addresses. In the U.S., the Securities and Exchange Commission (SEC) continues to examine whether POL should be classified as a security.

Why it matters: Clear stablecoin rules could unlock over $1 billion in cross-border transactions, but ongoing uncertainty may push projects to competing blockchains like Solana. Polygon’s 30-day price correlation with Ethereum dominance (-0.72) shows it is sensitive to broader regulatory developments.

Conclusion

Polygon’s future price depends on balancing growing institutional interest with successful technical upgrades and navigating regulatory challenges. The Cypher Capital partnership and GigaGas milestones provide positive momentum, but node stability and India’s regulatory timeline remain uncertain factors. Keep an eye on the 200-day simple moving average (SMA) at $0.2236 for signs of trend direction as Polygon competes with other Layer 2 solutions like Arbitrum.

What are people saying about POL?

The Polygon community is balancing excitement about upgrades with patience on price movements. Here’s what’s happening:

1. Almost all MATIC tokens have been swapped to POL – final steps for those who haven’t switched yet
2. CEO Sandeep Nailwal aims for 5,000 transactions per second (TPS) by October
3. Traders are watching for a price jump above $0.21 – technical signals suggest upcoming volatility

Deep Dive

1. @0xPolygon: MATIC to POL Token Swap Nearly Complete positive

"97.83% of the MATIC➪POL upgrade is complete"
– @0xPolygon (5.2M followers · 1.4M impressions · 2025-08-20 16:29 UTC)
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What this means: This is good news for POL holders because almost everyone has now switched from the old MATIC token to the new POL token. This reduces confusion and makes it easier to use Polygon’s technology for faster and cheaper transactions.

2. @Tokocrypto: Indonesian Traders Expect Price to Double positive

"Migrasi MATIC→POL 97.8% rampung… Analis prediksi reli hingga 2x lipat"
– @Tokocrypto (312K followers · 89K impressions · 2025-09-01 13:23 UTC)
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What this means: Traders in Southeast Asia are optimistic. Polygon’s strong ecosystem, with over $1.23 billion locked in its network and more than 45,000 decentralized apps, is seen as a solid base for the price to potentially double.

3. CoinMarketCap Community: Technical Analysis Shows Key Price Level neutral to cautious

"POL at $0.1841 below 20-day SMA ($0.1856). Resistance: $0.2087. Breakout to $0.21+ possible if holds above SMA."
– Anonymous trader (Post views: 12.7K · 2025-07-01 14:52 UTC)
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What this means: The short-term outlook is mixed. If the price can stay above the 20-day simple moving average (SMA) at $0.1856, it might break out above $0.21. But if it falls below, the price could drop back to around $0.165. Current market sentiment is cautious, with a low fear/greed index of 32/100.

Conclusion

Overall, the outlook for POL is cautiously optimistic. The near-complete token migration and plans to improve transaction speed support a positive future. However, recent price drops (-11.7% over the past week) suggest patience is needed. Keep an eye on the 20-day SMA at $0.1856—holding above this level could confirm a price breakout, while falling below might mean more sideways movement.

What is the latest news about POL?

Polygon is making moves to grow its presence with big investors while fixing technical issues to keep the network running smoothly. Here’s the latest:

1. Middle East Expansion (September 12, 2025) – Polygon teamed up with Cypher Capital in the UAE to increase POL adoption among institutions and improve liquidity.
2. Network Recovery (September 11, 2025) – A hard fork fixed bugs causing transaction delays of 10–15 minutes.
3. Price Volatility (September 10, 2025) – POL’s price dropped 4% during the network issues but bounced back after the fix.

Deep Dive

1. Middle East Expansion (September 12, 2025)

Overview: Polygon Labs partnered with Cypher Capital, a UAE-based investment firm, to bring POL to more institutional investors in the Middle East. Cypher Capital bought a large amount of POL and will work on strategies to increase returns, improve liquidity, and educate local investors. This partnership takes advantage of the region’s friendly crypto regulations and Polygon’s fast network upgrades, including transaction finality in under 5 seconds and the ability to handle 1,000 transactions per second.

What this means: This is positive news for POL. It opens the door for steady, long-term investments, strengthens the network through institutional staking, and positions Polygon as a key player for tokenized assets and decentralized finance (DeFi) in a fast-growing market. (Coinspeaker)

2. Network Recovery (September 11, 2025)

Overview: Polygon quickly released emergency updates (Bor v2.2.11-beta2 and Heimdall v0.3.1) to fix a bug that caused transaction delays of 10–15 minutes. Validators and service providers restarted their nodes to restore normal network operation. Importantly, no user funds were at risk during this issue.

What this means: The fast fix shows Polygon’s ability to handle technical problems efficiently, which helps calm concerns after the outage. Still, it highlights the challenges of keeping the network reliable as it grows. (Cryptotimes)

3. Price Volatility (September 10, 2025)

Overview: POL’s price dropped 4% to $0.27 during the network disruption, reflecting how sensitive traders are to network stability. After the fix, the price recovered by 2%, but POL is still down 30% for the year, reflecting cautious market sentiment overall.

What this means: These short-term price swings show that POL is affected by operational risks. However, a 24% gain over the past 90 days indicates positive momentum, partly thanks to earlier upgrades like integrating Ethereum staking.

Conclusion

Polygon is balancing growth with big investors, especially in the Middle East, while strengthening its technical foundation after recent network issues. Although these challenges tested confidence, the quick response and strategic partnerships show resilience. The big question is whether new institutional investments from regions like the Middle East can help Polygon overcome ongoing technical hurdles.

What is expected in the development of POL?

Polygon’s roadmap is focused on improving scalability, enabling cross-chain connections, and increasing adoption by institutions.

1. AggLayer Integration (Q4 2025) – Completing cross-chain connectivity to unify liquidity across blockchains.
2. Gigagas Throughput Upgrade (2026) – Aiming for 100,000 transactions per second (TPS) to support global payments.
3. Institutional Expansion (2025) – Partnering with Cypher Capital to grow Polygon’s presence in the Middle East.

Deep Dive

1. AggLayer Integration (Q4 2025)

Overview:
Polygon PoS plans to integrate with AggLayer, a protocol that allows different blockchains to communicate and share liquidity without relying on a central party. This comes after nearly completing the switch from MATIC to POL tokens (99% done as of September 2025) and supports Polygon’s goal of creating a connected blockchain network.

What this means:
This is positive for POL because it expands its use beyond just paying transaction fees and staking. It could increase demand as more blockchains become connected. However, there is a risk of technical delays in making cross-chain transactions fast and reliable.

2. Gigagas Throughput Upgrade (2026)

Overview:
As part of the “Gigagas” plan, Polygon aims to boost its transaction speed to 100,000 TPS by 2026. The first step is the Bhilai upgrade, expected to reach 1,000 TPS by late 2025. Recent improvements like Heimdall v2 have already reduced transaction finality time to 5 seconds and made the network more stable.

What this means:
This is somewhat positive because higher speeds could attract big players using real-world assets and stablecoins on Polygon. Still, Polygon faces competition from Ethereum’s own scaling solutions.

3. Institutional Expansion (2025)

Overview:
Polygon Labs has teamed up with Cypher Capital to promote POL adoption in the Middle East. They will offer structured investment strategies and liquidity options for institutions. This follows POL’s recent ability to be staked on Ethereum.

What this means:
This is good for increasing liquidity and network security. However, success depends on clear regulations in the region and overall market confidence in cryptocurrencies.

Conclusion

Polygon’s roadmap focuses on technical upgrades (AggLayer and Gigagas) and building partnerships with institutions to make POL a key player in global payments and cross-chain networks. While these improvements could boost demand, challenges like execution risks and market fluctuations remain. The big question is how Polygon will balance decentralization with the needs of institutional users as it grows.

What updates are there in the POL code base?

Polygon’s latest updates focus on making the network faster, more secure, and better at working across different blockchains.

1. Heimdall v2 Mainnet Upgrade (July 12, 2025) – Improved the core system for quicker transaction confirmation and better cross-chain support.
2. MATIC to POL Token Migration Completed (August 20, 2025) – Nearly all tokens switched to POL, simplifying the token system for Polygon’s AggLayer.
3. AggLayer Integration Plans (2025 Roadmap) – POL will power cross-chain transactions with a goal of handling over 5,000 transactions per second (TPS).

Deep Dive

1. Heimdall v2 Mainnet Upgrade (July 12, 2025)

What happened: Polygon replaced its old consensus technology with a newer system called CometBFT, cutting the time it takes to confirm transactions from about 90 seconds down to 4–6 seconds.

This upgrade also cleaned up outdated code and improved how validators (the network’s transaction verifiers) manage security keys and data. These changes prepare Polygon for advanced features like zkEVM, which allows Ethereum-compatible smart contracts with better privacy and speed.

Why it matters: Faster transaction finality means users experience quicker payments and decentralized finance (DeFi) activities. Enhanced security lowers the risk of transaction errors or reversals, making the network more reliable. (Source)

2. MATIC to POL Token Migration Completed (August 20, 2025)

What happened: Almost 98% of the old MATIC tokens on Polygon’s Proof of Stake (PoS) network have been converted to the new POL token. This change automates how transaction fees and staking rewards work.

The new POL token system includes a 2% yearly emission rate, which is split between rewarding validators and funding community projects. Users holding MATIC on Ethereum need to manually upgrade their tokens through the Polygon Portal, while those on Polygon PoS get automatic swaps.

Why it matters: In the short term, this change doesn’t drastically affect POL’s value. But long term, having a unified token system supports Polygon’s AggLayer vision, encouraging growth across multiple blockchains. (Source)

3. AggLayer Integration Plans (2025 Roadmap)

What’s planned: POL will be the main token for paying fees and staking on AggLayer, which aims to handle over 5,000 transactions per second by October 2025.

AggLayer’s upcoming upgrade (v0.3) will connect liquidity across different blockchains using zero-knowledge proofs, a technology that enhances privacy and efficiency. Developers are encouraged to build cross-chain applications through a $1 billion POL grant program (Season 2).

Why it matters: This expands POL’s use beyond a single blockchain, potentially increasing demand as more projects adopt AggLayer’s cross-chain capabilities. (Source)

Conclusion

Polygon is evolving into a fast, secure, and multi-chain platform with POL at its center. The Heimdall upgrade and token migration show technical progress, while AggLayer integration positions POL as a key player in cross-chain blockchain ecosystems.

The big question: Will POL’s growing role across multiple blockchains help it compete with Ethereum’s upcoming improvements?