Data shows about $109 million in MATIC has entered into Binance’s wallets during the past day, a sign that Polygon whales may be selling currently.
Polygon Whales Have Deposited Large Amounts To Binance Today
According to data from the cryptocurrency transaction tracker service Whale Alert, multiple large MATIC movements have been spotted on the Ethereum blockchain during the last few hours.
The first of these transactions involved the movement of 40 million MATIC, worth about $43.7 million at the time the transfer went through. As the amount involved here is quite large, it’s reasonable to assume that a whale entity may have been behind it.
As the sheer volume of coins involved in whale transactions can be quite large, the market can sometimes feel noticeable ripples from them. Exactly what way such a transfer may affect the price depends on the purpose behind it.
Here are some details regarding the aforementioned Polygon whale transaction, which may shed some light on why it was made:
This massive transaction seems to have only taken a fee of around $5 to go through on the Ethereum blockchain | Source: Whale Alert
As you can see above, the sending address in the case of this Polygon whale transfer was attached to the Polygon Staking service, while the receiver was a Binance wallet.
Generally, one of the main reasons why an investor may deposit their coins into an exchange like Binance is for selling purposes. Add to that the fact that holders who use staking services are usually in it for the long run, the latest deposit may suggest that a previously resolute investor could be losing their conviction in the coin and therefore, might be selling their stack.
Now, below are the details for the second whale transaction that has taken place today.
This transfer also involved a considerable sum | Source: Whale Alert
In this transaction as well, a Polygon whale deposited a large amount into Binance. More precisely, about 30 million MATIC ($32.8 million) flowed from an unknown wallet (that is, an address unaffiliated with a known centralized platform) to the Binance exchange.
The third and final transfer from today also had a similar structure, as can be seen below:
The third Binance inflow observed today | Source: Whale Alert
Interestingly, this transaction saw the exact same amount of MATIC move to the exchange as the previous one. Though, despite the similarities, there are no overlaps in the addresses between these two transfers (or between the first one and these two, for that matter), suggesting that different whale entities may have been behind them.
Just like the first transfer, these two deposits may have also been made with the intent of distributing the cryptocurrency. And if it’s indeed so, the Polygon price could feel bearish pressure from this selling pressure.
MATIC Price
At the time of writing, Polygon is trading around $1.09, up 1% in the last week.
MATIC hasn't moved much recently | Source: MATICUSD on TradingView
Featured image from Mark Basarab on Unsplash.com, chart from TradingView.com
