Polygon has declined by 6% during the past day as whales have shown signs of selling. The asset has also been flipped by Dogecoin in market cap.
Polygon Has Taken Another 6% Beating During The Past Day
March hasn’t been a good month for the cryptocurrency market so far, and Polygon has been no exception. In fact, MATIC has performed even worse than its peers during the past week.
At the time of writing, Polygon is trading around $1.05, down 6% in the last 24 hours. Below is a chart that shows the trend in the asset’s value over the past month:
Looks like the price of the coin has been going downhill since a while now | Source: MATICUSD on TradingView
As displayed in the above graph, Polygon hit a peak during the middle of February but has since been observing a constant downtrend. The decline had slowed down a bit during the last few days, but in the past 24 hours, it has once again accelerated.
In the last seven days, MATIC is now down about 13%. For comparison, Bitcoin is also deep in the red for this period, but its losses of about 7% are still significantly lesser than MATIC’s.
The sharp drawdown that Polygon has faced in the past day may have been because of the fresh activity shown by the whales. As per data from the whale tracker service Whale Alert, several large MATIC transfers have been spotted on the Ethereum blockchain today.
🚨 8,000,000 #MATIC (8,482,976 USD) transferred from unknown wallet to #Binancehttps://t.co/hnGwSXdSkH
— Whale Alert (@whale_alert) March 9, 2023
🚨 9,000,000 #MATIC (9,532,573 USD) transferred from unknown wallet to #Binancehttps://t.co/6buj9WckxQ
— Whale Alert (@whale_alert) March 9, 2023
🚨 9,000,000 #MATIC (9,594,924 USD) transferred from unknown wallet to #Binancehttps://t.co/djUhqoniZm
— Whale Alert (@whale_alert) March 9, 2023
🚨 8,500,000 #MATIC (9,062,176 USD) transferred from unknown wallet to #Binancehttps://t.co/lXF7SQoOoK
— Whale Alert (@whale_alert) March 9, 2023
🚨 9,000,000 #MATIC (9,612,718 USD) transferred from unknown wallet to #Binancehttps://t.co/0JWUpoeNND
— Whale Alert (@whale_alert) March 9, 2023
Interestingly, all of these five whale transactions were headed toward the cryptocurrency exchange Binance. Generally, one of the main reasons why investors transfer from their personal wallets (unknown wallets) to centralized exchange platforms is for selling purposes.
Hence, transactions like these can have bearish implications for the price. This means that it may not be a coincidence that Polygon has registered such a steep decline today when these sizeable transfers (all valued upwards of $8.4 million) have taken place.
It’s also possible that the whales are yet to pull the trigger on some of these sales and have only made the deposits to prepare for a future selloff. If this is indeed so, the decline could even extend in the next few days.
Dogecoin Has Flipped Polygon In Market Cap
One consequence for MATIC from the latest drawdown has been that it has lost its market cap list spot to DOGE. Earlier, the cryptocurrency was 8th on these standings, but now it has slipped to 9th after being overtaken by the meme coin, as the below table shows.
The market cap of Polygon seems to be $9.2 billion at the moment | Source: CoinMarketCap
While Polygon may have slipped down the list for now, the gap between its market cap and Dogecoin’s is still only around $300 million, which is something that can be closed easily if MATIC shows a bit more strength in the near future.
However, if MATIC instead continues the downward pace it has set during the past 24 hours, then the gap would likely only get wider with time.
Featured image from Mark Basarab on Unsplash.com, chart from TradingView.com