With most of the cryptocurrency market turning green on June 23, Polygon (MATIC) has seen the largest gain out of the top 100 cryptocurrencies by market capitalization.
Indeed, Matic has surged by as much as 23.81% in the last 24 hours to lead the market in terms of gains, followed by Uniswap (UNI) in second place up 17.11% and The Sandbox (SAND) up 13.89%, respectively.
Polygon is currently trading at $0.5035 with a total market value of $4.028 billion; thus, in the last 24 hours, MATIC has risen as much as $800 million, climbing from $3.016 billion, according to data from CoinMarketCap.
Interestingly, MATIC is still trading at a large discount to its all-time high of $2.92, which occurred in December 2021. This falls in line with the general bear market for cryptocurrencies and the pressure that a hawkish Fed is exerting on risky assets.
MATIC is experiencing an accumulation
Despite the overall downward trend of the crypto market, on-chain data reveals that a few of the wealthiest investors have been increasing their holdings of MATIC tokens.
There has been an accumulation of the so-called MATIC sharks and whales. This is notable, including the tiers of Polygon token holders whose coin holdings range from 10,000 to 10 million coins, who have “collectively added 8.7% more to their bags” since May 9, according to the data that was supplied by Santiment.
It is interesting to note that within the same time period, the price of MATIC dropped by 50%, highlighting the fact that many whales are optimistic about its long-term revival.
As per statistics provided by CryptoQuant, the total MATIC balance across all cryptocurrency exchanges increased from 1.21 billion to 1.37 billion between May 1 and June 23, signaling possible sell pressure in the near future.
Whale purchasing is not always a positive indicator; a further price surge might potentially drive whales to flip MATIC for a fast profit, given the tight circumstances elsewhere in the cryptocurrency and conventional markets that could result in false recovery signals.
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