A notable transaction involving the transfer of 4.5 million MATIC tokens, worth $3.81 million, to cryptocurrency exchange SwissBorg has been reported by on-chain data provider Spot On Chain. The transaction was executed by Hermez Network, a scaling solution acquired by Ethereum scaling platform Polygon for $250 million in August 2021. This event has drawn attention during a period of increasing community concerns regarding the transparency of token allocations by the Polygon Foundation.
Hermez Network, an open-source ZK-Rollup-based scaling platform, holds at least 39.92 million MATIC tokens valued at around $34 million, all of which are staked. The transfer of a portion of these MATIC assets to a crypto exchange has sparked interest, especially considering the current scrutiny over the Polygon Foundation’s transparency in token distribution.
MATIC, the native asset of Polygon, has experienced a 1% decrease in the last 24 hours, trading at $0.8532 at the time of the report. With a market capitalization of $8.15 billion, MATIC ranks as the 15th largest cryptocurrency.
Recent data shows that the price of the altcoin has risen by 5.20% over the last week and by 2.28% over the past month. Currently, MATIC is trading at 77.98% below its all-time high of $2.72 reached on December 27, 2021.
Market observers and analysts anticipate that Polygon, as a competent scaling provider, could make a significant impact in the next bull market, although the altcoin has yet to deliver on expectations.