With the recent transfer of 60 million MATIC tokens to exchanges, on-chain analytics company Santiment reported the second-largest rise in tokens switched to exchanges this year.
One of the largest self-custody Polygon addresses, 60 million MATIC, was recently transferred by a whale to an exchange, which increased the exchange supply on the network to a five-week high of 7.92%.
This incident brings to light the potential harm that whales’ huge token transfers might do to the network as a whole.
While these transfers may signal market activity and liquidity, they can also cause price changes and market volatility, so it’s crucial for investors to use care when they occur.
When whales, or huge holders, want to sell their tokens, they frequently shift them to exchanges. It should be noted that this specific whale has self-custody; as such, this might be a viable explanation for a significant token movement.
However, it is important to remember that the whale still has 3.78 billion tokens, which represents a sizeable portion of its MATIC holdings.
MATIC price action
According to CoinMarketCap, MATIC was down 2.26% in the previous day at $0.96 at the time of writing. While MATIC trades below the crucial $1 barrier, on-chain analytics company IntoTheBlock identifies possible MATIC support areas where investor interest may increase.
It claims that over 32,000 addresses purchased MATIC at a price of $0.918 making it a potential strong support.
“MATIC is now back at $1. Look at the on-chain action first: MATIC was purchased by 32.56k addresses for, on average, $0.918. This means that investor interest may increase if prices return to those levels, according to a new research by IntoTheBlock.
