Polygon (POL) Faced a Challenging September, Diverging From the Broader Crypto Market's Bullish Sentiment

The layer 2 scaling network activated the upgrade enabling the highly-anticipated MATIC to POL token migration on 4th September in a move aimed at unlocking more utility and flexibility.

Polygon (POL) price slid further into the red on Monday despite a new ecosystem milestone and broader crypto market optimism.

POL price dropped 5.6% in the last 24 hours to hit $0.38 at the time of writing. The token’s price also remained 70% below its 13th March all-time high.

ThisGambas Copy Code Monday morning price drop came despite a new milestone in the Polygon ecosystem. Polygon Labs activated the Ahmedabad hardfork on the Proof-of-Stake (PoS) mainnet last week.

The upgrade, which came after a two-week test period on the Amoy testnet, marked a crucial step in Polygon’s roadmap and included three Polygon Improvement Proposals (PIPs).

PIP-30 increased the maximum code size from 24KB to 32KB, enabling decentralized application (dApp) builders to execute more complex contract deployments and logics.

PIP 36 addressed the issue of stuck bridge transactions by making it possible to replay failed state syncs, while PIP-45 introduced a new opcode that enabled the creation of decentralized autonomous organizations (DAOs) on Polygon.

Monday’s price drop also came despite a bullish sentiment in the broader crypto market. Bitcoin and several altcoins registered decent gains in a month that is otherwise historically associated with negative returns.

Data from Coinglass showed that Bitcoin’s price rose 7.29% in September while Ether’s price moved 3.56% higher in the same period.

However, POL price dropped around 7% in the last 30 days, leaving the token’s price performance lagging behind major cryptocurrencies and highlighting the token’s poor price action despite the hype around the token swap.

Monday’s price drop saw up to 95% of token holders sitting on unrealized losses, according to data from IntoTheBlock. This includes 81% of holders who have owned the token for a year, during which POL has shed 37% of its value.