{"id":528464,"date":"2023-04-25T13:00:27","date_gmt":"2023-04-25T13:00:27","guid":{"rendered":"https:\/\/wncen.com\/?p=528464"},"modified":"2023-04-25T13:01:24","modified_gmt":"2023-04-25T13:01:24","slug":"polygon-exchange-supply-spikes-more-downtrend","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/matic\/polygon-exchange-supply-spikes-more-downtrend\/","title":{"rendered":"Polygon Exchange Supply Spikes, More Downtrend Incoming?"},"content":{"rendered":"

On-chain data shows the Polygon exchange supply has seen a sharp spike recently, something that could lead to a further downtrend for the asset.<\/p>\n

Polygon Exchange Supply Rises As Whale Makes 60 Million MATIC Deposit<\/h2>\n

According to data from the on-chain analytics firm Santiment<\/a>, around 7.92% of the entire MATIC circulating supply is on exchanges now. The relevant indicator here is the “supply on exchanges<\/a>,” which measures the percentage of the total Polygon supply that’s currently being stored in the wallets of all centralized exchanges.<\/p>\n

When the value of this metric rises, it means the investors are currently depositing a net number of coins into exchanges right now. Since one of the main reasons why holders may transfer their MATIC to these platforms is for selling-related purposes, this kind of trend can have bearish implications for the price of the cryptocurrency.<\/p>\n

On the other hand, decreasing values of the indicator imply withdrawals are taking place on exchanges currently. Such a trend may be a sign that investors are accumulating the asset at the moment, and hence, can be bullish for the price in the long term.<\/p>\n

Now, here is a chart that shows the trend in the Polygon supply on exchanges over the last few months:<\/p>\n

\"Polygon<\/p>\n

The value of he metric seems to have sharply risen in recent days | Source: Santiment on Twitter<\/a><\/pre>\n
As displayed in the above graph, the Polygon supply on exchanges (colored in red) has seen a sharp jump during the past day, suggesting that these platforms have received a large amount of the asset.<\/p>\n
Related Reading: Bitcoin \u2018ESR\u2019 Continues To Show Bullish Divergence, Will Price Follow?<\/a><\/div>\n
In total, this inflow spike saw around 60 million MATIC entering the wallets of the exchanges. The source of this deposit looks to have been a single whale<\/a> entity, which is in fact one of the largest holders of the cryptocurrency.<\/p>\n
The cryptocurrency transaction tracker service Whale Alert has also caught the transfer and has revealed that the transaction was coming from a wallet attached to the Polygon staking service, and its destination was the cryptocurrency exchange Binance<\/a>.<\/p>\n
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\ud83d\udea8 \ud83d\udea8 \ud83d\udea8  60,000,000 #MATIC<\/a> (59,472,041 USD) transferred from Polygon Staking to #Binance<\/a>https:\/\/t.co\/2m1PJNgY2a<\/a><\/p>\n
— Whale Alert (@whale_alert) April 24, 2023<\/a><\/p><\/blockquote>\n