- Ethereum's EIP-1559 introduces a fee-burning mechanism launched on the MATIC network earlier today.
- Proponents have estimated 0.27% of MATIC's supply will be burnt in a year.
- Increased fee visibility on MATIC could reduce spam transactions and network congestion.
- Analysts have predicted that MATIC prices could continue their downtrend until March 2022.
EIP-1559 upgrade is now live on the Polygon network. The upgrade could positively impact MATIC price with burn implementation. Proponents noted that previously the network’s congestion and unpredictable fees drove traders to competitors like Avalanche.
Analysts are bullish on MATIC price as Polygon commences burn
EIP-1559 implementation on the Polygon network was much-anticipated by proponents and traders. As the upgrade commences, 0.27% of MATIC supply could be burned over the span of a year.
Better fee visibility and predictability are expected to increase users and transactions on the Polygon network. Native token MATIC could witness a spike in on-chain activity with reduced network congestion and spam transactions.
In the case of Ethereum, the London hard fork triggered a supply shortage that drove up the altcoin's price. Proponents expect a similar impact on the Polygon network's native token, MATIC.
The MATIC network’s hard fork went live earlier today, at 3 AM UTC.
Nevertheless, MATIC price has posted 10% losses over the past 24 hours. Yet, despite this, analysts are bullish on the Polygon network's native token. @iam_Beast_, a pseudonymous crypto analyst and trader, compared MATIC price trend and FTM, predicting a rally in the token's price.
The analyst has set a target of $2.7 for MATIC price. @Trader_XO, a crypto analyst and investor, holds the contrarian view. The analyst believes that MATIC price could continue its downtrend till March 2022.
Will come back to this end of March...
— Trader XO (@Trader_XO) January 17, 2022
Short on Matic from $2.40 pic.twitter.com/o8s3b0H4XD
Lark Davis, a crypto analyst and YouTuber, commented on MATIC's implementation of EIP-1559. Davis believes that the hard fork is a significant update to the Polygon network.
$matic is pretty quiet considering the big hard fork coming up that will start burning supply!
— Lark Davis (@TheCryptoLark) January 18, 2022
FXStreet analysts believe that the MATIC bear trap could push the price to $2.70.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.