Key Points:
- USDC Integration: On October 10th, Polygon will welcome native USDC, offering ecosystem benefits.
- MATIC’s Bullish Trend: MATIC sees a 3%+ rise in seven days, with potential for further growth.
- Game-Changing Integration: How USDC can reshape Polygon’s network and user base.
On the horizon, Polygon is gearing up for the integration of USDC, courtesy of Circle, scheduled for October 10th. Preceding this development, the daily chart for MATIC has taken a bullish turn.
Polygon, represented by the token MATIC, recently unveiled its plans to introduce USD Coin (USDC) to its Proof of Stake (PoS) blockchain. While the blockchain was diligently working on this integration of a new stablecoin, MATIC’s native token experienced a bullish upswing in price, largely influenced by prevailing market conditions.
Polygon’s Integration of USDC
According to the latest announcement, native USDC will officially launch on Polygon’s PoS network on October 10th. This significant move will mark a transition away from using bridged USDC for ecosystem applications, developers, and users.
October 10th – save the date. Native $USDC will launch on Polygon PoS.
Native USDC, issued by @circle, will be the official form of USDC for the Polygon PoS ecosystem.
The benefits?
– Fully reserved & always redeemable 1:1 for US dollars
– Supported by Circle Account & its APIs… https://t.co/yCSf4gmaab— Polygon (Labs) (@0xPolygonLabs) September 28, 2023
Starting October 10th, Circle-issued USDC will seamlessly become native to Polygon’s PoS ecosystem, becoming the officially recognized form of USDC for the platform.
In line with the official communication, before the launch of native USDC, the Ethereum (ETH)-bridged version of USDC displayed on block explorers like PolygonScan will undergo a renaming to USDC.e.
Over time, native USDC liquidity is expected to grow, eventually superseding the bridged USDC liquidity sourced from Ethereum through the Polygon PoS Bridge. This transition brings forth several advantages, including support from Circle Account and its APIs, the facilitation of institutional on/off-ramps, and more.
Interestingly, as the blockchain prepared for the USDC integration, there was a notable drop in the Development Activity metric. The Dev. Activity Contributor Count metric followed a similar declining trend over the past week.
Furthermore, the network activity of Polygon PoS has exhibited some level of stagnation in recent months. Data from Artemis revealed that daily active addresses and transaction volumes on the blockchain did not experience significant growth.
However, the integration of USDC holds the potential to alter this landscape by attracting new users to the network.
MATIC’s Current Performance
Benefiting from the overall condition of the cryptocurrency market, MATIC’s price action exhibited a bullish trend in anticipation of the upcoming integration. According to CoinMarketCap, MATIC recorded a gain of more than 3% over the past seven days.
At the time of writing, MATIC was trading at $0.5224, boasting a market capitalization exceeding $4.8 billion. This price uptick has also had a positive impact on Polygon’s MVRV Ratio.
CryptoQuant data indicated that MATIC’s net deposits on exchanges were relatively low compared to the average of the previous seven days. This suggests that MATIC was not experiencing significant selling pressure at the time.
Additionally, Open Interest for MATIC increased alongside its price, implying that the upward trajectory is likely to persist. However, it’s worth noting that despite the uptick in price, MATIC’s weighted sentiment declined over the past week.
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