Polygon Set For a Huge Upgrade! What Traders Can Expect For MATIC Price on January 18

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The post Polygon Set For a Huge Upgrade! What Traders Can Expect For MATIC Price on January 18 appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

The cryptocurrency market appears to be in the midst of a time of extraordinary volatility, with volatility seen on both sides. The price of bitcoin continues to swing significantly; it is currently trading around $43k, whereas other traditional cryptos like ETH are trading at $3.3k.

Polygon, the asset that generated significant noise offsets, continued its upward trend despite the severe volatility. As a result, the MATIC price has turned bullish, while it is still vulnerable to bears.

Polygon Getting Ready For Upgrade

Polygon, Ethereum’s Layer 2 scaling solution, is getting ready for a huge upgrade next week. The Polygon blockchain will activate the London hardfork, or EIP-1559, on Tuesday, January 18 once block 23,850,000 is validated, according to a recent announcement from Polygonscan.

Polygonscan’s public statement says:

The much-anticipated London Hardfork on Mainnet has arrived, following the successful EIP-1559 update on Mumbai Testnet last year. On the 18th of January, around 3 a.m. ET / 8 a.m. UTC, #EIP1559 and associated EIPs will be launched on the Mainnet.

The Polygon network, like its elder sibling Ethereum, will use the EIP-1559 token burning technique. MATIC tokens will be burned out of circulation, allowing users to see their fees more clearly.

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.

2/2

— Polygon | $MATIC (@0xPolygon) January 11, 2022

Polygon currently has a fixed supply of 10 billion MATIC tokens available. As a result, every decrease in token supply has a deflationary effect. After speaking with Binance, MATIC BEP2 will also be withdrawn.

As a result, ERC-20 tokens will replace the 150 million BEP2 MATIC given as liquidity on the Binance Smart Chain (BSC). The following is a quote from the Polygon press release:

Is MATIC Price on the verge of hitting $3?

Polygon’s MATIC has become one of the best-performing cryptocurrencies, despite the recent market drop. 

The altcoin is currently trading at $2.34, and now bulls are attempting to push the MATIC/USD pair up further by clearing critical resistances at $2.65, where it may face some strong resistance.

 If MATIC Price manages to clear this resistance, the further uptrend is expected and it might rally towards $3 in the near term, completing an ascending broadening wedge.

1/2 We are proud to announce Plonky2, the world’s fastest ZK scaling tech!

Plonky2 is a recursive SNARK that is ~100x faster than existing alternatives! Furthermore, it is Ethereum compatible (it can prove Ethereum transactions and proofs can be verified on Ethereum). https://t.co/al62Wl2xpm

— Mihailo Bjelic (@MihailoBjelic) January 11, 2022

Polygon has also committed $1 billion to research towards zero-knowledge technology. In August, Polygon agreed to invest $250 million in MATIC tokens with Hermez Network, a zero-knowledge blockchain. 

It announced in December that it would allocate up to 250 million MATIC tokens to a contract with encryption firm Mir. That firm specializes in the PLONK and Halo zero-knowledge algorithm subdivisions, the latter of which does not require any type of trusted setup for proof verification.

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