- Polygon’s collaboration with Eternal AI utilizes improved interoperability to combine blockchain security with decentralized AI.
- Despite recent downward price movements, analysts remain optimistic about the future of Polygon (POL), driven by ongoing ecosystem growth, expecting it to surge to $1 by 2025.
Polygon blockchain has come up with its AggLayer v0.2 testnet, demonstrating major blockchain interoperability improvements. On Dec 20, it shared the new development of cross-chain transactions secured through a feature called “pessimistic proofs.” This feature provides cryptographic verification of balances. Thus, it reduces the risks associated with transactions and enhances communication across EVM networks.
Polygon Launches AggLayer testnet
The AggLayer testnet has strengthened Polygon’s position in the world of blockchain infrastructure. This launch shows proof that progress lies in waiting for the mainnet launch, which would then arrive during the early periods of 2025. Its steps are made to benchmark safety in a decentralized ecosystem.
Moreover, the collaboration by Eternal AI, the decentralized artificial intelligence agent, into Polygon’s infrastructure utilized its improved interoperability. Thus, this partnership would integrate blockchain security with advanced machine learning, bringing unprecedented advances in decentralized AI applications. This integration is the stepping stone to a growing trend of finding innovative solutions by combining blockchain with AI tech.
In another development, the Polygon community is exploring a proposal to generate approximately $1.3 billion in stablecoins from the Polygon PoS Bridge to lend to yield-generating protocols. These idle reserves in DAI, USDC, and USDT could potentially earn around $70 million in annual interest, reported CNF.
POL Price Action Amid Network Upgrades
Polygon’s native coin, POL, has an oscillating price trend. However, the last quarter showed an upward trajectory. Today, the POL price is at $0.4171, dropping over 20% in today’s trading session. In addition, it has been down 6.5% in the last 30 days, with 7-day losses pegged at 32%.
[mcrypto id=”402599″]
The price movements coincided with Binance.US stating it would support the MATIC-to-POL token migration. This migration is expected to start on January 9, when the conversion of MATIC to POL, at a 1:1 ratio, is anticipated.
Binance.US stated it would temporarily suspend trading on MATIC before this process commences. The platform requested that customers unstake active tokens to prepare for this move once completed. Thereafter, the trading of POL will be restored, as well as its deposit and withdrawal functions.
Meanwhile, despite the POL price slump today, analysts remain optimistic about its future. Polygon’s ecosystem is growing significantly through NFTs, tokenizing real-world assets, and decentralizing AI applications. The developments show the company continues to push forward with use cases catering to various sectors, per the CNF report.
AggLayer upgrade and associated innovations have led people to speculate about POL price action going ahead. Market analysts pointed towards increased adoption and diversification in terms of use cases, which could push the token’s value to $1 in the coming year. However, the crypto has to break the ongoing downtrend and rebound significantly to achieve the target. Currently, the $0.5 serves as a critical juncture in the journey to $1.
