MATIC, the native token of Ethereum scaling solution Polygon, has seen a 10% surge from Monday’s low of $0.67 as traders anticipate the upcoming Polygon 2.0 upgrade. The crypto is currently trading at $0.73, with $500 million being traded over the past 24 hours, according to CoinMarketCap.
Polygon recently announced plans for its 2.0 version, which is set to create “the value layer of the internet.” The protocol also said that it will transition to greater community governance and treasury in a blog post.
Matic’s aggregated open interest has seen an even larger uptick over the past 24 hours, rising from $109 million to $160 million, or 47%, according to Coinalyze. This suggests that the rally is being backed with leverage.
It’s worth noting that news events like upgrades can cause volatile price action as traders look to capitalize on unsustainable levels of optimism. Ethereum’s Shanghai upgrade is an example of this, with prices rising by 16% in the lead-up to the event before returning to parity less than a week later.