Polygon holders were left scratching their heads today as Polygon’s native token MATIC faced selling pressure seemingly out of the blue.
The selloff might came on the heels of a report from on-chain analytics platform Spot On Chain, which revealed that wallet address 0xa31 – linked to layer-2 scaling protocol Hermez Network which was acquired by Polygon in 2021 – deposited nearly $3 million worth of MATIC tokens to cryptocurrency exchange Kraken over the past few hours.
Hermez Network’s wallet address 0xa31 received close to 20 million MATIC (worth $19 million at the time) from Polygon’s treasury in late January. After today’s deposit, the wallet still holds over 16 million MATIC worth approximately $16 million.
It appears the entity controlling the wallet is slowly liquidating part of its MATIC holdings, likely exerting selling pressure on the open market with the deposits and subsequent sales on Kraken.
Notcoin airdrop on Telegram made millions to people. Don’t miss out on the next TG airdrop by the same team – Dogs on Ton!
Show more +With MATIC still held in sizable quantities by this whale address, further token dumps could be forthcoming depending on their motivation for profit-taking. If the address opts to fully liquidate holdings into fiat, MATIC could see protracted weakness until the systemic supply overhang is lifted.
At pixel time, MATIC changed hands at $0.94, up 2% on the day, the price still hasn’t reacted to what Spot On Chain reported. Traders are advised to keep a close eye on the activities of major token holders like address 0xa31, as their transactions often telegraph short-term price moves as seen today.
You may also be interested in:
- Bitcoin Bound for $150K? These Key BTC On-Chain Metrics Point to Potential Breakout
- How One Trader Made $150,000 with Just $198 Ethereum in 18 Hours
- Avalanche and Chainlink Climb Impressively While Investors Anticipate Huge Returns on Rebel Satoshi’s DEX Launch
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
