Two polygon (MATIC) whale accounts transferred 13.67 million MATIC tokens, worth $15.3 million, to Binance earlier today.
MATIC drops by 2.2% in 24 hours
The first whale, identified from the address “0xAAc2,” transferred 5 million MATIC tokens, worth $5.6 million, to Binance. The transaction can be seen on Etherscan.
The second whale, identified as “0x4677”, transferred 8.67 million MATIC, worth $9.7 million, to Binance on March 6. The transaction can also be seen on Etherscan.
As of the time of writing, MATIC is trading at $1.13 with a 24-hour trading volume of $327,927,313 and a $10,184,939,316 market cap. MATIC has seen a decline of 2.20% in the last 24 hours and a 12.10% decline in the past 7 days.
According to a report by Artemis, a crypto analytics platform, Polygon has recently experienced a surge in on-chain activity due to increased gaming. The report reveals that gaming accounts for 23% of all transactions made on the Polygon network, contributing 32% of all fees during the same period.
However, the network has seen a decline in DeFi activities and a drop in Total Value Locked (TVL).
The activity rate fall could have stemmed from decreasing dApp activity on the network, as dApps such as Balancer (BAL) have decreased activity. Additionally, the number of active wallets on the network decreased by 16.79% in the previous week.
The Polygon network experienced a decline in trading volume, total value locked, and revenue generated in the past week, leading to a 34.1% drop in MATIC price, highlighting the need for recovery and leveraging the increased gaming activity.
According to data from Dune Analytics, trading volume on the Decentralized Exchanges (DEXes) operating on the Polygon network decreased from $241 million to $185 million.
The decline in trading activity had a negative impact on the Total Value Locked (TVL) on the network, which dropped from $1.23 billion to $1.16 billion within just one week.
MATIC price analysis
The price of polygon is on a downward trend after hitting the resistance level of $1.50. The trend shows the current trend is purely a short reversal but on a general bullish move. The price also trades above the 50-day and 200-day moving averages, indicating the move is bullish.
Currently, the price is trading near the 50-day moving average, and if it’s strong enough, it might push the price back up to the previous resistance.
The retracement is also evident on the relative strength index, trading below the 50-level mark. To recover from this setback, the Polygon Network will need to leverage the increased gaming activity on its platform. By doing so, it may be able to revive trading activity and increase the TVL on its network.