- ETH’s EIP-1559 introduces fee-burning contrivances launched on the Polygon platform today.
- Experts estimated MATIC supply would see 0.27% burn per year.
- Improved fee visibility might reduce network congestion and spam transactions.
- Analysts believe MATIC might continue dropping until 2022 March.
The EIP-1559 update is live on the MATIC platform now. The upgrade might mean a positive effect on MATIC’s price as it implements a token-burning mechanism. Experts observed that the unpredictable fees and network congestions saw investors picking alternatives such as Avalanche.
Analysts Remain Bullish on Polygon with Burning Implementation
Traders and proponents have awaited EIP-1559 integration on the Polygon ecosystem. The implementation might see 0.27% MATIC supply burn per year.
Increased fee predictability and visibility will likely attract more transactions and users on the Polygon platform. With that, the network’s native coin MATIC may see surged on-chain activity with decreased spam transaction and network congestion.
For the Ethereum update, the London fork resulted in ETH’s supply shortage, driving the coin’s price higher. Analysts anticipate similar reactions by Polygon’s MATIC. Remember, Polygon’s hard fork was live early on Tuesday.
However, MATIC has dropped more than 10% of its price within the last 24 hours. Cryptocurrency experts remain bullish on the alt regardless of the 24hr loss. A crypto trader and analyst @iam_Beast compared Polygon’s price actions and Fantom, forecasting a bullish rally for the alt’s price.
The analyst believes MATIC will surge towards $2.7. Another crypto investor and analyst, @Trader_XO, remains with a contrarian opinion. The expert trusts MATIC price might extend its downward journey until 2022 March.
A YouTuber and crypto expert Lark Davis commented on Polygon’s native token with the EIP-1559 implementation. Davis trusts the hard fork remains a critical update on the Polygon platform. Moreover, FXStreet analysts trust MATIC’s bear trap may push the alt’s price towards $2.70.
For now, MATIC seems to prepare for upswings. The introduced burning mechanism will reduce the coin’s supply in the marketplace, translating to higher prices. Meanwhile, the broad crypto spectrum shows weakness at the moment. Bitcoin fails to gain ground, riding bearish waves at $41,757.
Furthermore, the global market cap hovered with a 2.26% decrease at $1.99 trillion. Nevertheless, optimistic crypto fans await bullish reactions from the crypto space.
Editorial credit: Dennis Diatel / shutterstock.com