The U.S. Securities and Exchange Commission (SEC) and its Impact on Polygon (MATIC)
The SEC’s recent lawsuits against major crypto exchanges, including Binance and Coinbase, had significant implications for several cryptocurrencies, including Polygon’s native token, MATIC.
MATIC’s Struggle to Rebound
Despite the overall rally in the crypto market following the lawsuits, MATIC failed to recover its previous losses.
Polygon’s MATIC is currently trading at $0.78, experiencing a 4.9% decline on the day and an 11.4% drop in the past seven days, according to data from CoinGecko. This marks the first time since early January of this year that MATIC has fallen below the $0.80 mark.
A Whale’s Influence
One possible reason for the failed recovery could be the actions of a significant whale in the crypto space. Recently, a large amount of MATIC, approximately 115.3 million tokens worth around $95 million, was transferred from a cold wallet to Binance. This massive transfer may have increased selling pressure, hindering MATIC’s ability to rebound similarly to other tokens.
MATIC Slips from the Top 10
Following the recent events, MATIC has slipped out of the top 10 cryptocurrency list, while its neighbor Solana (SOL) has reclaimed its position.
SOL now boasts over $600 million more in market capitalization compared to MATIC.
Importance of Polygon’s MATIC
Polygon’s MATIC has been a highly sought-after token in the crypto market, particularly due to its involvement in developing multiple Ethereum scaling solutions, such as Polygon zkEVM.
Despite the puzzling nature of whales selling off millions of MATIC tokens, the community speculates that it might be related to an upcoming airdrop for Polygon zkEVM users.
Summary
The SEC’s actions against major crypto exchanges have had varying effects on cryptocurrencies. While most tokens rallied and recovered, Polygon’s MATIC struggled to rebound after facing selling pressure from a large whale. Despite its innovative developments, MATIC slipped from the top 10 list of cryptocurrencies for the time being.
