Are whales abandoning MATIC?

• Whales start to send their MATIC to exchanges, price gets impacted.
• New updates and upgrades could help MATIC in the future.

Polygon [MATIC] is one of the most prominent networks in the crypto sector. The number of collaborations it has done with major companies such as Starbucks and Disney have helped MATIC gain mass appeal.

Despite these factors, it was seen that in the last few days, whale interest in MATIC was declining.

The whales start to dump

According to lookonchain’s data, FTX moved 8 million MATIC and 1,592 ETH to Coinbase and OKX. Additionally, two wallets, receiving MATIC from Polygon Ecosystem Growth, deposited 20 million MATIC to Binance.

The Polygon Ecosystem Growth wallet transferred 217 million MATIC to 70 wallets at the price high on 15th November. Subsequently, the price of MATIC dropped by approximately 22%.

The substantial movement of MATIC to major exchanges may trigger increased trading and adjustments. Large deposits associated with Polygon Ecosystem signal strategic moves within the network. This could impact projects and trading activities.

However, the subsequent transfer of a significant amount of MATIC could lead to more cynicism. Investors should be vigilant as such transactions can influence short-term price dynamics. This could prompt adjustments in trading strategies for many traders.

Price takes a hit

At press time, MATIC was trading at $0.734013 and had fallen by 2.56% in the last 24 hours. The volume at which MATIC was trading also declined during this period.

However, the MVRV ratio declined along with MATIC’s price. This showed that the number of profitable MATIC holders had decreased.

Even though that’s bad news for the holders, it’s good for the MATIC price. This is due to the lack of profitability; holders won’t be incentivized to sell their holdings. This could also help MATIC sustain its current levels and not drop further.

Source: Santiment

New changes

However, new updates and upgrades on the network could help the price move north.

This update brings important changes to the core elements of Polygon’s zkEVM, including the node, bridge, and proper infrastructure. These changes impact essential components like RPC, sequencer, synchronizer, and databases.

Is your portfolio green? Check the MATIC Profit Calculator

Additionally, the update includes enhancements to Websockets and various bug fixes. To ensure compatibility and access new features, developers must update their applications to the latest versions of the node, prover, and bridge.