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According to on-chain analytics firm Santiment, Polygon's on-chain activity is surging, with major dormant wallets suddenly coming to life.

Santiment noted that Polygon has been among the many networks declining since the crypto market retrace began back in March. However, recent indications from on-chain data suggest this narrative might change soon, with MATIC seeing a surge in on-chain activity.

Recent data presented by Santiment indicates 69 billion MATIC consumed in a dormant coin movement spike, with 3,369 MATIC addresses interacting on the network, marking the second highest day of the year. It went on to say that a notable spike in on-chain activity may be a sign that a MATIC reversal may be brewing soon.

According to Santiment, active addresses and the dormant coin spikes that Polygon (MATIC) currently presents are common signals that often precede a market reversal.

At the time of writing, MATIC was down 1.15% in the last 24 hours to $0.442 and down 84.83% from all-time highs of $2.92 attained in December 2021. In the coming days, the market will keep a close eye to see if this rise in on-chain activity translates into a bullish reversal in MATIC's price.

Countdown to much-anticipated POL upgrade

The surge in on-chain activity coincides with anticipation of the major POL upgrade scheduled for Sept. 4.

On Sept. 4, the long-awaited upgrade from MATIC to POL continues. In the initial phase, POL replaces MATIC as the native gas and staking token for the Polygon PoS network. In subsequent phases, POL will play an important role in the AggLayer.

Holders of MATIC on Ethereum, Polygon zkEVM and centralized exchanges may have to migrate, with a Polygon Portal Interface launched in this regard.

Meanwhile, all MATIC on Polygon PoS and staked MATIC on Ethereum will be upgraded automatically on Sept. 4. Holders of MATIC on Polygon PoS will not need to take any action, and neither will MATIC stakers and delegators on Ethereum.

POL,  a fully community-driven upgrade, further expands the utility of Polygon’s native token to reflect and power the vision of Polygon as an ever-growing network of aggregated blockchains.