Massive MATIC intake by whales when Polygon Ecosystem explodes

MATIC continues to respond differently to market volatility. This comes after the coin’s price collapsed to a multi-year bottom of $0.31 in mid-June due to a multitude of market-shaking challenges during the last eight months.

Networks based on or similar to Ethereum such as Polygon and Solana are getting popular at an incredible rate as a result of their extraordinarily cheap transaction costs and simplicity of asset transfer. According to statistics from DeFiLamm, the total value held in layer 2 protocols has increased by more than 30 percent to $1.86B worth of assets on Polygon. In October of 2017, Polygon overtook Ethereum in terms of active users, showing a growing investor preference for these protocols over Ethereum.

Given that Polygon offers cheaper and quicker transactions by operating sidechains besides the Ethereum blockchain, its combination with Coinbase is anticipated to improve customer onboarding and use hence providing a major boost to Polygon’s MATIC.

Moreover, as a result of the current crypto market decline investors seem to be shifting their focus towards projects having the potential to survive market storms. This tendency has been shown by investors’ continued stockpiling of MATIC despite falling prices. According to the crypto on-chain analytics company IntoTheBlock, the MATIC price spike was followed by a significant rise in whales’ holdings.

“The recent 9 percent rise in holdings between 100 million and one billion MATIC is the highest since November of last year,” IntoTheBlock stated a day after Coinbase’s statement last week.

Also Read: Snoop Dogg Remains Bullish On Ethereum Despite A 70% Decline In NFT Trades

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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