Polygon (MATIC) has become one of the standout networks in the cryptocurrency industry. Partnerships with major companies such as Starbucks and Disney have increased MATIC’s mass appeal. However, in recent days, there has been a noticeable decrease in whale interest in MATIC.
According to Lookonchain, FTX transferred 8 million MATIC and 1.592 ETH to Coinbase and OKX. In addition, two wallets that received MATIC from Polygon Ecosystem Development deposited 20 million MATIC into Binance. The Polygon Ecosystem Development wallet transferred 217 million MATIC to 70 wallets when the price was at its highest on November 15th.
As a result, the price of MATIC dropped by approximately 22%. The significant transfer of MATIC to major exchanges could trigger increased transactions and adjustments. These movements could be signals of strategic maneuvers within the Polygon network that could affect projects and transaction activities. However, the subsequent transfer of a significant amount of MATIC could lead to increased skepticism. Investors should be cautious as such transactions can affect short-term price dynamics, which may cause many analysts to adjust their trading strategies.
On the other hand, with the drop in MATIC’s price, the MVRV ratio also decreased, indicating a decrease in the number of MATIC holders in profit. This could be bad news for holders but potentially good for the MATIC price since holders may not be incentivized to sell their assets.
Nonetheless, new updates and upgrades to the network could help the price move upward. The update brings significant changes to the core components of Polygon’s zkEVM, including the bridge and infrastructure. These changes can affect essential components such as RPC, sequencer, synchronizer, and databases. The update also includes improvements in Websockets and various bug fixes. Developers may need to update their applications to the latest versions of the node, prover, and bridge to maintain compatibility and access new features. At the time of writing, MATIC was trading at $0.734013, down 2.56% in the last 24 hours.