• Polygon’s MATIC token surged by double digits last week, entering the top 10 club with a market capitalization of over $9.9 billion.
• An analysis of on-chain metrics revealed a whale address transferring $56 million worth of MATIC before the price surge.
• On-chain indicators such as decreasing exchange reserve and low net deposits on exchanges suggested that the trend could be sustained.
The crypto space was abuzz with news of Polygon’s MATIC token registering double digit growth last week. This pump helped it re-enter the top 10 club with a market capitalization of more than $9.9 billion, according to CoinMarketCap. At press time, MATIC was trading at $1.14, and investors were keen to understand the reason behind the surge.
Santiment pointed out that on 25 January, the largest MATIC transfer of the year took place, transferring $56 million worth of tokens to a whale address. This was followed by a price surge, indicating that the whale address had a hand in the pump. The address already held 585k Ethereum (ETH), and this news sparked discussion among crypto enthusiasts.
To get a better understanding of the trend, investors looked at the on-chain performance of MATIC. The exchange reserve was decreasing at press time, which was a positive signal, as it suggested less selling pressure. The net deposits on exchanges were also low, indicating that the rally could be sustained. In addition, the four-week price volatility of MATIC increased sharply, which meant that the surge could continue.
Overall, MATIC’s rise over the past week was largely due to the whale activity, as well as the fact that the on-chain metrics supported the bull run. Investors should keep an eye on the coin’s performance in the coming days to see if the trend remains intact.