Polygon To Activate EIP-1559 or London hardfork on Jan 18, Is $3 Coming for MATIC?
Ethereum’s Layer 2 scalability solution Polygon is preparing for a major upgrade coming next week. As per the recent announcement from Polygonscan, the Polygon blockchain will be activating the London hardfork or EIP-1559 in 5 days on Tuesday, January 18, once block 23,850,000 is validated.
The official announcement from Polygonscan reads:
After the successful EIP-1559 upgrade on Mumbai Testnet last year, the much-awaited London Hardfork on Mainnet is here! #EIP1559 and related EIPs will be activated on the Mainnet on 18th Jan around 3 AM ET / 8 AM UTC.
Taking cues from its elder brother Ethereum, the Polygon network shall also be implementing the EIP-1559 token burning mechanism. The burning mechanism will remove the MATIC tokens from circulation offering better fee visibility to its users.
Polygon currently has a fixed supply of 10 billion MATIC tokens. Thus, any reduction in the number of tokens will result in an overall deflationary effect. Furthermore, after consulting with Binance, MATIC BEP2 will be discontinued.
Thus, the 150 million BEP2 MATIC provided as liquidity on the Binance Smart Chain (BSC) shall be swapped for ERC-20. The Polygon announcement notes:
As a user, If you hold MATIC on Ethereum, Polygon PoS chain or BSC or on Binance, no action is required. If you hold BEP2 MATIC please move them to Binance and withdraw MATIC on Ethereum, Polygon or BSC. All BEP2 MATIC will be burned when all users are done swapping.
Is MATIC Heading to $3?
Polygon’s MATIC has been one of the top-performing cryptocurrencies even during the recent market correction. As of press time, MATIC is trading 8.5% up at a price of $2.39 and a market cap of $16.8 billion.
Polygon’s MATIC holds the potential to hits $3 if the broader crypto market remains supportive. Also, on the technical chart, Polygon’s MATIC has formed an ascending accumulation channel which might lead to a breakout above $3.
Is #Polygon MATIC creating an ascending accumulation cylinder and will explode out of ATH in the coming weeks? pic.twitter.com/SiC5DMWdko
— Bitcoinsensus (@Bitcoinsensus) January 10, 2022
It will be interesting to see how far can MATIC go in the wake of all the recent developments. Drop your predictions below!
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
