According to CoinMarketCap data, MATIC was down 9.87 percent at USD 2.16 at the time of publication. This could be attributed in part to the ongoing market falls, which have seen Bitcoin fall below USD 42,000 and the majority of altcoin tokens lose value.
Polygon keeps a 30-day Bitcoin correlation of 0.85, which is quite high, whereas IntoTheBlock offers MATIC a 30-day Bitcoin correlation of 0.85, which is quite high.
According to a blog post, the EIP-1559 upgrade provides Polygon with the same fee-burning mechanism, which destroys MATIC tokens. It also eliminates the first-price auction method of setting network fees, which improves cost predictions but does not reduce gas prices.
The first-price auction is no longer the principal mechanism for computing fees under EIP-1559. Instead, to expedite processing, there is a separate base price and a priority cost for transactions to be included in the following block. The base cost, which fluctuates depending on network congestion, is then burned.
The burning is split into two phases, with the first taking place on the Polygon network and the second on the Ethereum network.
On the MATIC daily price chart, analysts expect a bullish cup and handle formation to appear as the uptrend continues. According to WhaleStats, MATIC has seen an increase in whale activity in the previous 24 hours, ranking as the most traded token among the top 1,000 ETH wallets.
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