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.