This week proved fruitful for most of the crypto market and many altcoins even set records, including MATIC, the token of the Polygon Network. As prices rose, so did investors’ upward trend, and MATIC seemed to be enjoying the gains. However, this move by certain investors could cause MATIC to slow its growth.
MATIC has thrown a lot of altcoins
The 41.83% rally the altcoin saw this week resulted in the flipping of some key tokens on the top 20 cryptocurrency list. With a market capitalization of $ 13.37 billion, Polygon outperformed Bitcoin Cash, Litecoin, Algorand, and Binance USD Stable Coin to rank 17th.
Polygon has pushed its boundaries on many fronts to make itself accessible to everyone using a variety of methods. Running India’s first hackathon, BUILDIT, was one such attempt. In fact, the company recently invested in Asia’s largest NFT marketplace called Colexion to expand its reach into the Asian market. In addition to development, investments have become an instrument for their expansion.
But first we need to discuss the move by investors that could slow the rise of Polygon.
What Have Polygon Investors Done?
Because of the rally, most investors took this opportunity to take profits and we could see results in the chain as well. As the rise began, investors began selling too, and in less than 10 days, over 100 million MATIC, valued at nearly $ 200 million, were sold.
A large chunk of these sellers were also Long Term Owners (LTHs) who moved their inventory and used it for 26.9 billion days in 3 days.
Payouts are not a bad idea when the market is not strong or when the market is watching a potential reversal. But a payout when the asset looks strong for another surge can have a detrimental effect.
As a result of this sale, MATIC is down almost 8% today. TThis may now be the reason for investors to suffer losses even though MATIC holders made gains all month. In fact, investor profit rose from 44.16% to 93.24% at the time of this review due to the strong performance.
Additionally, the same surge also led to a surge in engagement, as both active addresses and new addresses experienced a boom this week.
So if investors want to keep these stats and not cause the market capitalization to reverse, it would be best to HODL their MATIC.
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