- MATIC’s trading volume has grown significantly in two days along with the price.
- Whales have greater accumulation as their profit grows.
The trading volume of Layer 2 token Polygon [MATIC] has seen a significant increase in the past two days, data from Sanitation revealed. According to the on-chain data provider, MATIC’s trading volume increased by 29% during that period.
Source: Sentiment
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The growth in trading volume coincided with growth in the value of MATIC. The price of MATIC, which traded hands at $0.741 at time of writing, is up 7% since July 10, according to data from CoinMarketCap.
The increase in price and trading volume of MATIC is due to the growth in new question for the sign. Recent data from Sanitation revealed that the number of new wallet addresses created daily to send or receive MATIC tokens has increased by more than 28% in the past month.
Furthermore, an assessment of the token’s exchange activity revealed a consistent decline in MATIC’s supply on exchanges since early June. The supply of MATIC on exchanges has fallen by 15% in the past month. At the time of writing, only 8% of the token’s total supply was on cryptocurrency exchanges.
Source: Sentiment
A fall in the supply of an asset on exchanges is a bullish sign because it indicates less selloff. It usually shows that both traders and investors are more interested in holding their assets, which generally helps prevent an unprecedented fall in the value of the asset.
Whales pile up amid growing profits
On-chain data revealed that traders holding between 1 and 100,000 MATIC tokens have intensified the accumulation over the past month. With this investor cohort holding 6.8 million MATIC tokens at the time of writing, their total holdings have grown by 10% over the last 30 days.
Moreso, the number of larger whales holding between 100,000 and 1,000,000 MATIC tokens has increased by 6% over the same period.
Source: Sentiment
There is a close relationship between an asset’s whale activity and price performance. Increased whale accumulation over an extended period of time often indicates improved sentiment, enough to bring new liquidity into the market.
How much is 1.10, 100 MATICs worth today?
With MATIC seeing its whales grow, the price may continue to rise as long as sentiment continues to improve. The increase in MATIC’s whale accumulation over the past month may be due to the asset’s increased profitability over the same period.
According to data from Santiment, on a 30-day moving average, the ratio of daily MATIC trades to profit was 1.24, suggesting that more trades resulted in trader gains than losses.
Source: Sentiment
