Why did the price of POL go up?

Polygon (POL) increased by 2.27% in the last 24 hours, breaking away from its downward trend over the past 30 days (-13.55%) and 90 days (-16.72%). This rise is supported by positive technical signals and renewed optimism around Polygon’s ecosystem, despite ongoing concerns in the broader cryptocurrency market. Key factors driving this include:

1. Vitalik Buterin’s support for Polygon’s zero-knowledge (ZK) technology and humanitarian projects (Positive Influence)
2. AggLayer upgrades nearing completion, aiming to improve cross-chain compatibility (Mixed Impact)
3. Technical rebound from oversold conditions, with momentum indicators suggesting a possible shift (Neutral to Positive)

Deep Dive

1. Vitalik’s Praise & Ecosystem Sentiment (Positive Influence)

Overview: Ethereum co-founder Vitalik Buterin publicly praised Polygon for its early work on zero-knowledge Ethereum Virtual Machine (EVM) technology and for hosting impactful applications like Polymarket (CoinJournal). He also highlighted Polygon co-founder Sandeep Nailwal’s CryptoRelief initiative, which donated $190 million in SHIB tokens to support pandemic research.

What this means: Buterin’s endorsement strengthens Polygon’s reputation within the Ethereum community, especially as some have criticized the Ethereum Foundation for limited support. This recognition could attract more developers and institutional investors looking for Layer 2 (L2) solutions that align with Ethereum’s future plans.

What to watch: Adoption rates for AggLayer version 0.3 (released June 2025) and whether Polygon secures additional partnerships aligned with Ethereum’s ecosystem.

2. AggLayer Progress & Migration Finality (Mixed Impact)

Overview: Polygon’s AggLayer upgrade is designed to combine liquidity across different blockchains using zero-knowledge proof technology. So far, 97.83% of the migration from MATIC to POL tokens has been completed as of August 2025 (0xPolygon). However, delays in integrating Polygon’s Proof-of-Stake (PoS) chain with AggLayer have raised concerns about potential fragmentation.

What this means: If successful, AggLayer could make POL a key token for cross-chain transactions. But the slow rollout of Polygon PoS integration, now expected in the fourth quarter of 2025, risks losing ground to competitors like Coinbase’s Base platform, which Vitalik has recently praised.

What to watch: The rate at which POL tokens are burned after migration and whether AggLayer’s total value locked (TVL) surpasses $1.5 billion (currently at $1.23 billion).

3. Technical Rebound & Oversold Conditions (Neutral to Positive)

Overview: Technical indicators like the Relative Strength Index (RSI) at 40–42 and the Moving Average Convergence Divergence (MACD) histogram at +0.000245 suggest cautious buying momentum after a 21.32% drop over 60 days. The price remains above a key Fibonacci support level at $0.175, with resistance near $0.204 (the 38.2% retracement level).

What this means: Short-term traders may be taking advantage of oversold conditions, but low trading volume (down 24% in the last 24 hours) and resistance from the Exponential Moving Average (EMA) at $0.21264 indicate uncertainty about whether this rebound will last.

What to watch: A close above the 30-day Simple Moving Average (SMA) at $0.21456 could signal a trend reversal. If it fails, the price might retest support around $0.165.

Conclusion

Polygon’s recent 24-hour gain reflects a combination of strategic endorsements from Ethereum leadership, progress on key technology upgrades, and technical buying interest. However, challenges remain due to delayed product integration and limited liquidity. Key point to monitor: Will AggLayer’s mainnet launch in Q4 2025 boost developer engagement, or will POL continue to face pressure from Bitcoin’s market dominance (59.12%) and skepticism toward alternative cryptocurrencies?

What could affect the price of POL?

Polygon (POL) is working through technical upgrades and changing partnerships in a competitive Layer 2 (L2) blockchain space.

1. AggLayer Delays – Challenges with connecting different blockchains may slow adoption (Mixed Impact)
2. Tokenomics Changes – Proposal to reduce inflation aims to tighten supply (Positive)
3. Institutional Interest – Deals in the Middle East and tokenized real-world assets (RWAs) boost demand (Positive)

In-Depth Look

1. AggLayer Delays & Ethereum Relations (Mixed Impact)

Summary: Polygon’s AggLayer v0.3 is designed to combine liquidity across multiple blockchains, but it missed its Q3 2025 goal to integrate with Polygon PoS, according to CryptoSlate. At the same time, Polygon co-founder Sandeep Nailwal publicly criticized the Ethereum Foundation for not providing enough support (CoinSpeaker), showing some tension within the ecosystem.

What this means: The delay in AggLayer could slow Polygon’s ability to lead in cross-chain solutions. Ethereum seems to favor competitors like Base, which might pull developers away from Polygon. However, Ethereum co-founder Vitalik Buterin has praised Polygon’s work on zero-knowledge (ZK) technology (CoinJournal), which helps Polygon’s reputation.

2. Tokenomics: Inflation Cut & Buyback Plan (Positive)

Summary: A governance proposal aims to stop POL’s 2% yearly inflation (about 200 million POL tokens per year) and start buying back tokens using treasury funds (Cointelegraph).

What this means: Cutting inflation would reduce the number of tokens sold each year by roughly $38 million (based on a $0.19 price per POL). Buybacks could increase demand and push prices higher. Similar strategies have helped other cryptocurrencies like BNB and AVAX grow.

3. Institutional Demand & Real-World Asset Growth (Positive)

Summary: Polygon is partnering with Cypher Capital to reach Middle Eastern institutions (CoinSpeaker). Meanwhile, AlloyX launched a $13 million tokenized fund on Polygon, with Standard Chartered as custodian, showing growing interest in tokenized real-world assets.

What this means: These developments could bring in over $50 million from institutional investors, according to analysts. Since POL is used for transaction fees and staking, increased activity could generate more revenue for the network.

Conclusion

Polygon’s future price depends on successfully launching AggLayer to keep developers engaged, finalizing deflationary tokenomics, and expanding real-world asset use cases. While Ethereum’s changing L2 politics create some uncertainty, growing institutional interest and tighter token supply offer potential upside. Will Polygon’s Rio upgrade reach 5,000 transactions per second (TPS) by October to support its focus on payments?

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What are people saying about POL?

Polygon’s POL token is at a critical point with key updates and mixed market reactions. Here’s the quick summary:

1. Almost all MATIC tokens have been upgraded to POL (97.8%) – positive sign
2. CEO aims for 5,000 transactions per second (TPS) by October – cautiously optimistic
3. Analysts watching $0.28 price level as a potential breakout point – neutral outlook

Deep Dive

1. Polygon’s MATIC to POL Migration Nears Completion – Positive

Polygon recently announced that 97.83% of MATIC tokens have been successfully upgraded to POL. This migration is a crucial step in their long-term plan, called the gigagas roadmap.
Why it matters: Completing this migration reduces confusion and excess supply of the old token, strengthening POL’s position in Polygon’s multi-chain ecosystem. Keep an eye on the remaining 2.17% of tokens yet to convert, as full adoption could enhance network effects.
See original announcement

2. POL Price Predictions Rise Alongside Ecosystem Growth – Positive

Analysts are optimistic about POL’s price potential, especially as the total value locked (TVL) in Polygon’s network reaches $1.23 billion and over 45,000 decentralized apps (dApps) are active.
Why it matters: Growing TVL and dApp numbers show that Polygon’s ecosystem is expanding, which usually supports token value. However, POL’s price has dropped 68% since December 2024, indicating that the market hasn’t fully reflected these fundamentals yet.
More details here
Related analysis

3. Key Price Level at $0.28 Could Signal Next Move – Neutral

Technical analyst Crypto Patel points out that breaking above $0.31 could open the way for POL to reach $0.50, but the current price range of $0.19 to $0.21 is a critical support zone.
Why it matters: The market is showing signs of accumulation, but the Fear & Greed Index is at 32, indicating cautious sentiment. Watch for increased trading volume above $0.25 as a sign of stronger momentum.
See analysis
Fear & Greed Index data

Conclusion

The outlook for POL is mixed. The near-complete migration and upcoming technical upgrades are positive developments, but the token’s price performance shows some market hesitation. The goal of reaching 5,000 TPS by October could improve adoption and use cases, but POL’s recent 23% drop over 60 days highlights ongoing skepticism.
A key metric to watch is the POL/Ethereum staking ratio after migration finishes. If more users stake POL natively, it would indicate stronger long-term commitment from holders.

What is the latest news about POL?

Polygon is navigating challenges with Ethereum while making important technical upgrades and earning key recognitions. Here are the latest updates:

1. Ethereum L2 Loyalty Debate Heats Up (October 22, 2025) – Delays in Polygon’s AggLayer raise questions about Ethereum’s support for outside Layer 2 solutions.
2. Polygon CEO Criticizes Ethereum Foundation (October 21, 2025) – Polygon leaders express frustration over lack of support despite their contributions.
3. Vitalik Buterin Praises Polygon’s Zero-Knowledge Technology (October 21, 2025) – Ethereum’s co-founder highlights Polygon’s role in scaling and humanitarian work.

In-Depth Look

1. Ethereum L2 Loyalty Debate Heats Up (October 22, 2025)

What happened:
Polygon’s AggLayer v0.3 update was delayed, sparking renewed debate about how Ethereum supports external Layer 2 (L2) networks. Vitalik Buterin recently praised Base, Coinbase’s L2, which led to speculation that Ethereum favors solutions developed within its own ecosystem. Polygon’s AggLayer is designed to work across different blockchains, but missing its Q3 goal to integrate Polygon PoS raised concerns about Ethereum’s fee-sharing approach with L2s.

Why it matters:
This is a mixed situation for Polygon (POL). If AggLayer succeeds, Polygon could become a key player connecting multiple blockchains. But delays and Ethereum’s changing focus might slow down adoption. (CryptoSlate)

2. Polygon CEO Criticizes Ethereum Foundation (October 21, 2025)

What happened:
Polygon CEO Sandeep Nailwal and DeFi developer Andre Cronje publicly criticized the Ethereum Foundation for offering “zero support” despite Polygon’s important role in helping Ethereum scale. Nailwal pointed out that the Foundation hasn’t recognized Polygon’s work on zero-knowledge Ethereum Virtual Machine (ZK-EVM) technology. Cronje compared this lack of support to more active backing from competing blockchain ecosystems.

Why it matters:
This news caused some short-term negativity for Polygon, with POL’s price dropping 5% amid a weak market. However, it could push Polygon to become more independent and stronger in the long run. (CoinSpeaker)

3. Vitalik Buterin Praises Polygon’s Zero-Knowledge Technology (October 21, 2025)

What happened:
Ethereum co-founder Vitalik Buterin praised Polygon’s early work on zero-knowledge proofs (ZK-EVM), the success of Polymarket, and CEO Nailwal’s humanitarian efforts like CryptoRelief. He encouraged Polygon to adopt ready-made zero-knowledge technology to ensure full Layer 2 security but recognized Polygon’s important role in Ethereum’s scaling plans.

Why it matters:
This is positive news for Polygon, confirming its technical leadership and ethical commitment. However, Buterin’s call for standardization means Polygon faces challenges in execution. (CoinJournal)

Conclusion

Polygon is balancing Ethereum’s shifting priorities with its own goals. While tensions exist between leadership teams, Vitalik Buterin’s support and the promise of AggLayer show Polygon’s resilience. The key question remains: will Polygon’s technology outpace Ethereum’s internal projects, or will Ethereum favor Layer 2 solutions that align more closely with its core ecosystem?

What is expected in the development of POL?

Polygon’s roadmap focuses on making the network faster, improving how different blockchains work together, and bringing real-world assets (RWAs) onto the platform. Key upcoming milestones include:

1. AggLayer Integration (Q4 2025) – Completing cross-chain connections to unify liquidity across Polygon networks.
2. Rio Upgrade (October 2025) – Boosting transaction speed to 5,000 transactions per second (TPS).
3. Gigagas Expansion (2026) – Aiming for 100,000 TPS to support global payment systems.

Deep Dive

1. AggLayer Integration (Q4 2025)

Overview
AggLayer version 0.3 launched in June 2025 but experienced delays in linking with Polygon PoS. The next step is to bring all Polygon chains under one shared security system, allowing secure and trustless transactions across different blockchains. This is a key part of Polygon’s goal to create an “Internet of Blockchains” (Polygon Blog).

What this means

• Positive: AggLayer could increase demand for POL, as it will be essential for securing cross-chain transactions and paying fees.
• Challenges: The technology is complex, and competition from projects like EigenLayer could slow down adoption.

2. Rio Upgrade (October 2025)

Overview
The Rio hard fork introduced a new system called Validator-Elected Block Producer (VEBloP), which cuts block finality time to under one second and prevents chain reorganizations. It also improved staking rewards and the way Miner Extractable Value (MEV) is shared (The Block).

What this means

• Positive: Faster transactions (up to 5,000 TPS) and very low fees (around $0.001 per transaction) make Polygon more competitive for payment applications.
• Challenges: Past network outages, like the one in July 2025, show there are risks in rolling out these upgrades.

3. Gigagas Roadmap (2026)

Overview
Polygon’s “Gigagas” plan aims to reach 100,000 TPS through several upgrade phases, starting with Bhilai (1,000 TPS). Collaborations with companies like Stripe and BlackRock focus on tokenizing real-world assets, using Polygon’s affordable infrastructure (Coincu).

What this means

• Positive: Institutional interest in tokenizing real-world assets could increase the use of POL and support token burn mechanisms, potentially boosting value.
• Challenges: Ethereum’s own scaling improvements, such as Danksharding, might reduce the need for Layer 2 solutions like Polygon.

Conclusion

Polygon’s roadmap combines technical improvements (Rio, Gigagas) with ecosystem growth efforts (AggLayer, real-world assets). Its success depends on delivering high-speed performance while adapting to changes in Ethereum’s Layer 2 environment. Will Polygon keep its competitive edge as Bitcoin Season reduces liquidity in altcoins?

What updates are there in the POL code base?

Polygon’s latest updates focus on completing the token migration, improving performance, and expanding cross-chain capabilities.

1. MATIC → POL Migration (August 20, 2025) – Almost done at 97.83%, with POL now used for transaction fees and staking.
2. Heimdall v2 Mainnet Launch (July 10, 2025) – Faster transaction finality and safer cross-chain transfers thanks to a major system upgrade.
3. AggLayer Integration Plan (2025) – POL’s role grows to connect liquidity across multiple blockchains.

Deep Dive

1. MATIC → POL Migration (August 20, 2025)

Overview: Polygon is nearly finished switching from its old token, MATIC, to the new POL token. POL is now the main token for paying transaction fees and staking on Polygon’s Proof-of-Stake network, supporting its goal to scale massively.

Details: The upgrade keeps compatibility with existing decentralized apps (dApps), so users experience little disruption. Ethereum holders can still swap MATIC for POL through the Polygon Portal. The new tokenomics set a 2% yearly token emission, split evenly between rewarding validators and funding community projects.

What this means: This is positive for POL because it strengthens network security and opens up new uses across different blockchains, like the upcoming AggLayer. Users get smoother transactions and may qualify for ecosystem rewards (Source).

2. Heimdall v2 Mainnet Launch (July 10, 2025)

Overview: Polygon completed its biggest system upgrade since 2020 by switching to a new consensus technology called CometBFT and updating its software framework. This cut the time it takes to confirm transactions from about 90 seconds down to 4–6 seconds.

Details: The upgrade sped up block processing, removed outdated code, and made cross-chain transfers more reliable. Validators faced a short 3-hour delay during the switch, which meant some dApps had to wait longer for transaction confirmations temporarily.

What this means: This is generally good news for POL because faster transaction finality makes Polygon more suitable for real-time payments and business applications. However, there were some short-term technical challenges during the upgrade (Source).

3. AggLayer Integration Plan (2025)

Overview: POL’s use is expanding as the key token for AggLayer, Polygon’s solution to unify liquidity across different blockchains.

Details: With nearly all MATIC tokens migrated, POL is set to secure multiple blockchains and support cross-chain services. A planned staking hub will allow validators to secure these combined networks and earn rewards across ecosystems.

What this means: This is positive for POL because it shifts from being a token tied to one blockchain to a multi-chain governance and staking tool, fitting Polygon’s vision of creating an “Internet of Value” (Source).

Conclusion

Polygon’s recent updates show a clear focus on scaling, connecting different blockchains, and delivering enterprise-level performance. The near-complete POL migration and Heimdall v2 upgrade set the stage for AggLayer’s cross-chain future. As POL’s role grows, it will be interesting to see how its utility evolves as Polygon competes in the new modular blockchain landscape.