Polygon (MATIC) has seen a significant uptick of 8.5% in the last 24 hours. This surge can be attributed to positive on-chain growth, reduced selling pressure, and an improved regulatory outlook.
MATIC Soars Ahead of Polygon 2.0 Rollout: Rebounding Network Growth and Reduced Selling Pressure
The token had previously suffered a 35.5% drop in early June following the U.S. Securities and Exchange Commission’s (SEC) classification of it as a security in case filings against Coinbase and Binance.
Regulatory Concerns and Selling Pressure Eased
The appointment of Marc Boiron, their legal head, as CEO seems to have acted as a positive catalyst for the price, which had been bogged down by regulatory concerns. Moreover, the token faced downward selling pressure due to the 90 million MATIC tokens worth $66.6 million held by the bankrupt lending firm Celsius.
However, recent data shows that Celsius has unloaded over 99% of its MATIC holdings, easing the selling pressure on the token.
Rebounding On-Chain Growth
On-chain analytics firm Santiment reported a rebound in growth on Polygon. The firm pointed to favorable MATIC token flows as its supply on exchanges reduced, suggesting that more investors moved MATIC to self-custody than to sell on exchanges. Despite SEC’s charges and many doubts from the ecosystem, Polygon’s NFT trading volumes in the last 30 days were 11% higher than the previous month, too.
Anticipation for Polygon 2.0
The market’s sentiments have improved following the announcement of Polygon 2.0 at the end of June. The upgrade aims to transform Polygon into a network of ZK-powered layer-2 networks, unified via a novel cross-chain coordination protocol. According to the Polygon 2.0 roadmap, the team is expected to announce the new tokenomics model this week.
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