Polygon (MATIC) has faced ongoing challenges as its exchange supply, specifically, the amount of MATIC tokens stored in centralized exchanges, experienced a significant spike.
This surge in supply is largely attributed to a substantial deposit made by a single whale, adding approximately $95 million worth of MATIC to Binance.
The increase in the supply of MATIC on exchanges suggests a higher number of coins being deposited, potentially indicating a trend towards selling.
This bearish sentiment can exert downward pressure on the cryptocurrency’s value. Conversely, a decrease in exchange supply signifies investors withdrawing their coins, possibly indicating accumulation and presenting a bullish outlook for the cryptocurrency.
The recent surge in MATIC exchange supply is primarily driven by a single whale’s massive deposit of 115.3 million MATIC tokens, equivalent to approximately $95.4 million at the time of the transaction.
This deposit has contributed to a sharp increase in the percentage of MATIC held in exchange wallets, reaching around 9.43% of the total circulating supply.
While the overall cryptocurrency market has shown signs of recovery following a recent downturn, Polygon has failed to gain positive momentum.
Despite a brief price crash triggered by the SEC’s lawsuit against Binance, many cryptocurrencies, including Bitcoin, have managed to rebound. However, Polygon’s price has continued its downward trajectory.
Sophia Hernandez is an experienced crypto writer who has been writing about crypto and blockchain technology for 3 years. She has a deep understanding of the complexities of the crypto market and is skilled at breaking down these concepts into easy-to-understand language for readers.
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