Something big is happening in the cryptocurrency world and people in town are watching with curiosity. As two major projects in the industry are moving towards the $3 milestone. More tantalizingly, one is a layer 1 protocol while the other is a layer 2 protocol. The digital assets we are referring to here are Cardano and Polygon.

Polygon with the major EIP-1559 London hard fork upgrade has been causing a stir in the business, which is scheduled for January 18, 2022 at 8:00 AM UTC. While Caldano has made a splash in the charts with the launch of its DEX SundaeSwap and amazing metrics. Connoisseurs of the sector are keen on the movement of both assets.

The fight for supremacy?

Polygon's long-awaited EIP-1559 upgrade will go live at 8:00 a.m. UTC today. By the time you read this news, it will probably already be live. As CoinPedia previously reported, this upgrade will completely change the network's fee structure through a coin-burning mechanism. This in turn will make it a deflationary asset, while pushing up Polygon's price.

Asset prices are bound to spike as the token destruction mechanism creates an imbalance in the ratio of supply to demand. Upgrades are critical to reducing fees, which will enhance the use of the dApp. However, Polygon's native token MATIC has yet to react to the initiative, as the value of the asset fell about 8% to $2.20, above ADA.

Caldano, on the other hand, has been acting independently of the industry. While most digital assets have been struggling on the K-chart, ADA prices have been fluctuating significantly. This is now a concern for the savvy, as a similar movement was seen in September prior to the Alonzo hard fork.

ADA price is up 8.99% sequentially and at the time of writing is at $1.56. Trading volume and SundaeSwap scheduled for January 20. Growing metrics and other initiatives have been driving Cardano's growth. Savvy people are hoping this doesn't turn into a buy rumor sell news event.

All in all, Polygon will likely initiate the upgrade after the upgrade and the time maze will answer soon. We can expect a short delay in the reaction of assets to the upgrade, as investors will be curious before taking any action. That said, we can expect MATIC to see a 35% to 40% real increase.

On the other hand, Cardano's run is commendable, and an event like Alonzo's hard fork is unlikely to happen. If conditions continue to favor Cardano, we can expect a similarly healthy 40-45% run. That said, the event is an interesting one.