Polygon Whale Emerges from Staking Journey: Potential Impact on MATIC?

Changes in Transactions and Circulation

Following this whale’s transaction, Polygon network witnessed an increase in transactions, yet a decrease in circulation.

Whale Alert, a reputable source for tracking crypto movements, reported that a Polygon whale transferred 13.36 million MATIC tokens worth a significant amount from a staking wallet to an undisclosed destination. This action has triggered speculation within the cryptocurrency community, raising concerns about a potential sell-off.

With a Current Reward Percentage (CRP) of 4.95%, the total amount of MATIC staked on the Polygon network has reached 3.69 million tokens, valued at approximately $2.02 million. This staking activity has led to the 103 validators involved earning a combined total of about 815.41 million MATIC tokens.

No Indication of Capitulation

Despite initial concerns, it appears that the whale’s withdrawal may not necessarily signal an impending sell-off. This observation is partly due to the state of daily trading volume on exchanges. According to data from Santiment, the trading volume of MATIC on exchanges has decreased to 185.11 million, suggesting reduced buying and selling activity of the token. Market participants seem to be holding onto their MATIC holdings.

Meanwhile, Polygon has experienced a decline in network growth. Prior to this decline, Polygon’s network growth had been steadily increasing, reaching 165,000. Network growth reflects the number of new addresses participating in transactions for the first time.

However, as of the latest update, Polygon’s network growth has dropped to 45,500. This decline indicates that recent network participants have refrained from engaging in transfers or interactions with the project.

Rise in Network Activity, Fall in Circulation

Despite the network growth decline, the last seven days have seen an interesting development in the number of active addresses on Polygon’s network, which has risen to 1.45 million. An address is considered active when it engages as a sender or receiver in a successful transaction. This increase suggests a notable uptick in unique transactions.

Contrary to what might be expected, the seven-day circulation also experienced an initial increase, followed by a subsequent decrease. Circulation measures the number of unique tokens used during a specific period. Surges in this metric may indicate a temporary increase in selling pressure, while a decline suggests otherwise.

Assessment and Implications

Based on the metrics analyzed, it appears that MATIC may not experience an immediate negative impact from the recent whale activity. However, traders and investors should remain vigilant and monitor the broader market direction to gauge the future movements of the token.