It is early Monday Polygon (MATIC) one of the very few altcoins that trade in the green, as the defeat in the crypto market extends to another week until the end of the year. At the time of writing, MATIC / USD trading at around $ 2.09.
This is what awaits you in this article
Polygon implements EIP-1559 upgrade on Testnet to burn MATIC tokens
Many exciting developments are afoot in Polygon’s ecosystem that will help traders remain optimistic about leading Layer 2 Ethereum Scaling solution, even when executives on the board experience weak price movements below key levels. One of the key developments driving the uptrend is the announcement of the BlockchainNetwork to introduce the burning of MATIC tokens with every transaction, which will cause a deflationary effect and further increase the value of its native token.
The move will be part of Ethereum’s EIP-1559 upgrade, which Polygon has already implemented on its test network in Mumbai, introducing annualized burning for 0.27% of its total offering to MATIC. The upgrade will ensure better transparency of charges by burning the base charge, which fluctuates depending on network congestion, allowing users to better estimate the transaction costs on the network.
Following the announcement of this decision to incinerate tokens as part of the EIP-1559 upgrade, data from WhaleStats has an increase in the accumulation of MATIC tokens among the Ethereum whales or large holders. Since that PolygonTeam announced this upgrade, MATIC is among the top 10 tokens held by the 1,000 largest Ethereum wallets worldwide.
Further basics increase the interest in buying Polygons MATIC
Another interesting development that is driving the growing interest of investors in the MATIC token is the announcement of a joint $ 200 million initiative between Polygon and Seven Seven Six to invest in Web3 and social media projects. According to Alexis Ohanian, co-founder of the venture capital company, the fund will focus on developing dApps in the Polygon ecosystem, particularly for games and social media.
Meanwhile, institutional interest in Polygons MATIC could also get a boost soon as the ETF and mutual fund manager VanEck launch an ETN for this digital asset. Much like ETFs, VanEck’s ETNs provide a safe way to get exposure to digital assets even though they are considered unsecured debt.
MATIC / USD technical analysis
Coin Bureau, the leading crypto trading series on YouTube, is optimistic about Polygon’s growth potential. According to a recent video, the show’s host, Guy, is predicting 2-3 fold growth in the value of MATIC in the current cycle and possibly even more based on its roadmap for the future.
MATIC / USD
The technical analysis of the H4 price chart shows a bearish picture between smaller moving averages and the MACD. However, the 50 EMA, 100 EMA, 200 EMA and the momentum indicator also indicate a certain buying interest in the market.
Polygon’s price holds just above the pivot point at $ 2.08, and increased buying pressure can comfortably bring it up. The next obstacle buyers will encounter is the immediate one resistance at $ 2,433 which is some distance away.
Source: Crypto News Deutsch