Less MATIC than expected? – Since the Ethereum (ETH) network incorporated its EIP 1559 enhancement, the net issuance of new ethers has been plummeting. Because if there is still as much ETH created as block rewards, more than 1 million ethers have been destroyed since the introduction of EIP 1559 in August 2021. A deflationary example that has well been tried to follow the Polygon project (MATIC).
A Polygon-style Ethereum improvement
Ethereum improvement proposal (EIP) 1559 was a real game changer for the network Ethereum. The latter, unlike Bitcoin (BTC), does not have a maximum unit limit, which has led to fear of a inflation too much ethers in the long term.
EIP 1559, arrived with the hard fork London, has completely changed this, since ethers are now destroyed with every transaction. They are taken from gas costs, given by users to validate their transaction. So much so that some are starting to believe that the inflation of ethers has even become currently lower than bitcoin issuance.
It is in this context that the project Polygon recently announced that his own version of the EIP-1559 was to be launched on its testnet Mumbai, before a possible implementation on its main network.
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MATIC deflation excites whale flair
Many consider that the sharp rise in ether prices during these last months of 2021 is largely due to the implementation of EIP 1559. Indeed, the decrease in the number of ethers, or at least its very low inflation, make investors anticipate a increase in valuation mechanics of each ETH.
And the same seems to be true for investors who are interested in Polygon. Indeed, according to a publication by UToday, whales (very large investors) would have accumulated nearly $ 14 million from MATIC since the announcement of the imminent arrival of the EIP 1559 on Polygon.
As data from the WhaleStats site indicates, one of these whales even obtained, on its own, 2.49 million MATIC tokens, or for more than $ 4.6 million at the time of purchase (and already $ 5.3 million at the time of this writing).
The EIP 1559 definitely piqued the speculative curiosity of investors, large whales as well as small fish. The Polygon project is not, however, the first to want to draw inspiration from the improvement of Ethereum. Indeed, from October 2021, the Binance Smart Chain (BSC) put forward the idea of an improvement: “BEP 95”, almost identical to the EIP 1559, in order to continue the current “ burn “(Destruction) of BNB tokens – which is done for the moment according to the results of the Binance crypto-exchange.
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