In the volatile cryptocurrency world, the value of Polygon’s native token, MATIC, has dropped significantly, falling below the $0.80 threshold in early Monday trading, according to an FX Street report. This decline erases the gains MATIC had accumulated in the first two weeks of December, highlighting the fluctuating nature of crypto markets.
MATIC’s bearish trend is further substantiated by on-chain metrics, with a notable increase in the token’s supply on crypto exchanges. From December 1, the supply of MATIC on exchanges rose from 9.05% to 9.18% by Monday, marking a six-month high. This increase suggests heightened selling pressure, which typically aligns with a bearish market sentiment for cryptocurrencies like MATIC.
The price drop coincides with significant activity from large-wallet investors, often called whales. These investors appear to capitalize on recent price rallies, opting for profit-taking.
This trend is evident from the Network Realized Profit/Loss (NPL) data, which, per FX Street, shows notable spikes in profit-taking on December 12, 14, and 17, with the most substantial spike occurring on December 17. This data aligns with an uptick in high-value whale transactions, supporting the idea that these major players are choosing to liquidate their holdings.
Today, the price of MATIC stands at $0.789641, following a 6.36% decline in the last 24 hours and an 8.69% fall over the past week. Despite these fluctuations, Polygon maintains a robust market cap valued at $7,453,103,130, with a circulating supply of 9.3 billion MATIC tokens.
The dynamics in Polygon’s MATIC token value reflect the broader trends and sentiments within the cryptocurrency market. Factors such as increased supply on exchanges and whale activity are crucial in shaping market behavior. Investors and market watchers alike should remain aware of these fluctuations, which underscore the inherent risks and opportunities within the crypto market.
