Polygon Price Under Pressure as Whales Deposit Over 100 Million $MATIC on Binance
Data from the blockchain shows that around $109 million worth of Polygon ($MATIC) have been sent to wallets belonging to leading cryptocurrency exchange Binance over the past few hours, suggesting the cryptocurrency’s price is set to undertake significant selling pressure.
The first transfer involved the movement of 40 million MATIC, worth about $43.7 million at the time of the transfer. As the amount involved here is quite large, it’s reasonable to assume that a whale entity may have been behind it, and since the funds are being moved from self-custody to exchange, many have assumed the whale is selling their holdings.
Whale transfers can cause noticeable ripples in the market due to the sheer volume of coins involved. The whale held their tokens on-chain to use them for staking services, allowing them to earn interest on their tokens while helping secure the network through its Proof-of-Stake consensus mechanism.
A second transfer involving 30 million MATIC ($32.8 million) was then made from a wallet on the blockchain to Binance, further hinting at a significant sell-off. A third one saw the exact same amount of MATIC move to the exchange as the previous one, but with no overlap in addresses between the transfers. This suggests different whale entities or funds being used for different purposes.
Notably, Polygon Labs introduced the Mainnet Beta for its Polygon zkEVM, an Ethereum scaling solution that significantly reduces transaction costs and increases throughput, late last month.
The technology, used by major companies like Meta, Stripe, and Reddit, is now completely open-source under the AGPL v3 license, allowing developers to modify, utilize, and distribute the code. The Polygon zkEVM leverages zero-knowledge (ZK) proofs to maintain Ethereum’s security while boosting performance.
ZK-proof technology enables the grouping of transactions and their transmission to the Ethereum network as a single, bulk transaction, reducing fees for all parties involved. The high security and censorship resistance of Polygon zkEVM makes it an attractive option for developers of payment and DeFi applications.
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