Polygon’s MATIC lagged behind as the crypto ensemble experienced a strong recovery day. A $95 million transfer from a whale cold wallet to Binance seems to be the cause behind the derailment.
The tenth-largest cryptocurrency by market cap also had its first decline below $0.80 since January 6th, Santiment noted.
Similar findings were reported by on-chain analytics firm IntoTheBlock which spotted massive whale transactions on the MATIC network following the latest regulatory crackdown on the cryptocurrency market.
Whales’ transactions exceeded $100k, an increase of 742% in a span of 24 hours. Such massive movements of large-scale investors indicate the willingness of buying or sell by this category of holders.
The entire crypto market has been painted red following the SEC’s lawsuit against the biggest crypto exchanges, Binance and Coinbase. At the time of writing, MATIC was down 4% in the last 24 hours to $0.77. The token was alleged to be a security in both the commission’s filings.
Recently, the US regulator SEC launched legal actions against Binance and Coinbase on the grounds that they had failed to register with the agency while acting as brokers, national securities exchanges, and clearing agencies.
Polygon Labelled Security In Sec’s Filing
Additionally, it said that Coinbase’s operations fell “squarely within the purview of the securities laws” due to the crypto assets that are made available on its platform. SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO were among the digital assets mentioned.
In an earlier report, Polygon witnessed one of the largest spikes in whale exchange inflows of the year as 60 million tokens are moved to exchanges.
The whale in question, according to the on-chain analytics platform, Santiment, is one of the largest self-custody Polygon addresses, whose recent action caused the exchange supply of the network to increase to a five-week high of 7.92%.
This was the second-largest surge in tokens switched to exchanges in 2023.
Typically tokens transfers of such scale by whales leave a significant impact on the overall health of the network. Although these moves might be a sign of market activity and liquidity, they can also cause market volatility and price fluctuations, therefore it’s crucial for investors to exercise caution when such activity occurs.