Should you invest in Polygon (MATIC) before EIP-1559 gets activated on the mainnet?
- Polygon (MATIC)’s EIP-1559 upgrade will be activated on the mainnet on January 18, 2022, at around 3 ATM ET
- Polygon’s trading volume has increased by 75% in the last 24 hours.
- MATIC has the potential to increase in value once the upgrade gets activated, making this a time to invest
Polygon MATIC/USD is a blockchain scalability platform specifically developed for connecting as well as building blockchain networks that are compatible with Ethereum.
It utilizes the Plasma framework as one of the driving developments behind the technology’s mass adoption. Polygon has its own implementation of Plasma known as Polygon Plasma Chains.
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EIP-1559 mainnet activation as a catalyst for growth
On January 11, Polygon made an announcement through their official Twitter feed that after the successful EIP-1559 upgrade on Mumbai Testnet last year, the much-awaited London Hardfork on Mainnet is here.
They also said that EIP-1559 and related EIPs would be activated on the mainnet on January 18, 2022, at around 3 ATM ET or 8 AM UTC.
EIP-1559 is intended to change the fee market mechanism and will eliminate the first-price auction as the main gas fee calculation.
In first-price auctions, typically, people would bid a set amount of money to pay for the transaction to be processed, where the highest one wins.
Through EIP-1559, there will be a discrete “base fee” for transactions to be included in the next block, and users who want to prioritize their transaction can “tip,” a function known as a “priority fee” to pay a miner and get included faster.
This introduction will help MATIC become a deflationary asset that would, in turn, have a broad effect on the entirety of the Polygon community, which includes the holders, validators, delegators, and even developers.
All of this can contribute to the growth in value of the MATIC token.
Should you invest in Polygon (MATIC)?
On January 17, Polygon (MATIC) had a value of $2.31.
To get a better perspective as to what kind of value point this is for the Polygon (MATIC) token, we will compare it to it’s all-time high value, alongside its performance last month.
In terms of the performance of the MATIC token throughout the previous month, we can see that its lowest point of value was on December 6, when the token decreased to a value of $1.76.
The all-time high value of the MATIC token was on December 27, when it reached a value of $2.92. Here, we can see that the token increased in value by $1.16 or by 65.91%.
At $2.31, MATIC is a solid investment as after the upgrade; it has the potential to reach $3, specifically by the end of January.
Where to buy right now
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*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.