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

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.

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 After speaking with Binance, MATIC BEP2 will also be withdrawn.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.

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.