Polygon (MATIC) continues to face challenges as recent on-chain data reveals a significant spike in MATIC exchange supply.
The surge, primarily driven by a substantial deposit from a single whale, has raised concerns within the market. This article delves into the implications of increased supply on exchanges and explores the potential impact on Polygon’s value and price performance.
On-chain analytics firm Santiment reports that a whale deposited approximately $95 million worth of MATIC to Binance in the past day.
This transaction has directly influenced the “supply on exchanges” metric, which measures the percentage of circulating supply stored in centralized exchange wallets.
An upward trend in this metric often indicates selling-related intentions, potentially exerting bearish pressure on the asset’s value.
When the supply on exchanges rises, it signifies a net influx of coins into exchange wallets. Conversely, decreasing values suggest investors are withdrawing their coins, potentially indicative of accumulation and bullish sentiment.
The recent graph demonstrates a rapid surge in Polygon’s supply on exchanges, largely attributed to the substantial deposit made by the whale to Binance.
As a result, the indicator has reached approximately 9.43%, implying that over 9% of Polygon’s circulating supply is now held within exchange wallets.
In the past few days, the digital asset sector experienced a price crash following news of the US Securities and Exchange Commission (SEC) filing a lawsuit against Binance and its CEO for alleged fraud.
While the broader market displayed signs of recovery, with Bitcoin briefly surpassing $27,000, Polygon struggled to generate a positive momentum.
