According to CoinMarketCap data, MATIC, the native asset of the Polygon blockchain is up nearly 8% in the last 24 hours at the current price of $1.98.
The MATIC price received a boost after dipping nearly 16% to lows of $1.751 on Dec. 13. A testnet implementation launch of Ethereum Improvement Proposal 1559 to introduce the burning of MATIC tokens had contributed to the buying sentiment.
Asides from this, large investors took advantage of the dip to purchase MATIC tokens.
According to whale surveillance website WhaleStats, an Ethereum whale just bought 1,007,525 MATIC tokens worth $2,025,125. MATIC also ranks among the top 10 purchased tokens and holdings by whales in the last 24 hours, as indicated by WhaleStats.
Polygon launches burning mechanism
On Dec. 14, Polygon's core development team announced it was rolling out a testnet implementation of Ethereum Improvement Proposal 1559 to introduce the burning of its native MATIC token and better fee visibility.
EIP-1559, which allows users to better estimate costs, went live on Ethereum's mainnet on Aug. 5 and has had an impact on the price of the cryptocurrency.
The London hard fork, or EIP-1559, went live on Polygon's Mumbai testnet on Dec. 14, at 8 a.m. UTC. Polygon's MATIC has a fixed supply of 10 billion, so any reduction in the number of available tokens will have a deflationary effect. Ethereum's price rose by more than 40% after almost four months of the London hard fork upgrade.