Data shows a Polygon whale has just deposited $5.2 million in MATIC to Binance, a sign that could be bearish for the value of the asset.
Polygon Whale Transfers A Large Amount Of MATIC To Binance
As per data from the cryptocurrency transaction tracker service Whale Alert, a significant amount of MATIC, the native cryptocurrency of Polygon, has been moved to the Ethereum blockchain in the last couple of hours.
In total, the transaction involved the movement of 4,316,984 MATIC, which was worth about $5.2 million at the time the transfer in question took place. Since the numbers here are quite large, it seems reasonable to assume that a whale could be responsible for the transaction.
Large transfers such as the one that occurred today can sometimes hold the power to move the market as the scale of coins involved in them is huge. Since whales, the cohort made up of the largest holders in the market, generally make sizeable transfers, their movements can be worth looking out for as they may cause fluctuations in the price.
Naturally, the direction of any change in the value of the asset caused by such transfers would depend on whether they were made for buying or selling purposes (or perhaps even neither of these).
Here are some additional details regarding the Polygon whale transaction that was spotted on the network today that may provide more context regarding the intent behind it:
Looks like this MATIC transaction only needed a fee of $1.29 to go through on the Ethereum blockchain | Source: Whale Alert
As you can see above, the sender of this Polygon transfer seems to have been from an unknown address, meaning that the coins were coming from a wallet not attached to any known centralized platform, suggesting that the holder made the move from a personal wallet.
The receiving address, on the other hand, was connected to the cryptocurrency exchange Binance. Transactions like these that go from unknown wallets to exchange wallets are called “exchange inflows.”
As one of the main reasons why investors deposit to exchanges is for selling-related purposes, exchange inflows can have a negative effect on the price of a cryptocurrency.
In the current case, the inflow coming from the whale is quite sizeable in value, so the deposit may deliver a significant bearish impact on MATIC’s value. That would be only true, of course, assuming that the investor here indeed made the transfer to swap to another coin or to withdraw to fiat.
It’s possible that the whale simply made the deposit to use any of the other services that an exchange like Binance offers and has no plans on actually selling right now. In such a scenario, the effect on the price is likely to be neutral.
Yesterday, WhaleStats, another tracking service, revealed that the 500 largest Ethereum whales were holding more than $128 million in Polygon. This means that even accounting for the latest potential sale, the whales as a whole still have large amounts invested in MATIC, so the long-term outcome could still be bullish for the altcoin.
https://twitter.com/WhaleStats/status/1624898816271958019?cxt=HHwWhoC-vai35owtAAAA
MATIC Price
At the time of writing, Polygon is trading around $1.15, down 3% in the last week.
MATIC has plunged in the past day | Source: MATICUSD on TradingView