Polygon Price Soared by 27%: Why is MATIC on the rise?

Cryptocurrency Polygon has increased by 27% in the last 24 hours

Polygon (MATIC) claims to have just achieved carbon neutrality, a balance between carbon emissions and carbon absorption. According to CoinGecko, the price of Polygon (Matic) cryptocurrency has risen more than 27 percent in the last 24 hours to $0.50, with the digital token up 15 percent in the last seven days. Polygon, which reached an all-time high of $2.92 on December 27, 2021, has lost over 80% in 2022 (YTD).

While Matic is still roughly 83 percent lower than its all-time high price of $2.92 recorded on December 27, 2021, the current spike in the token's price has come as a relief to investors bruised by the market's extended fall.

🦈🐳 $MATIC sharks and whales have been in a pretty big accumulation trend for about six weeks. The tiers of holders ranging from 10k to 10m coins held have collectively added 8.7% more to their bags in this timespan. 📈 https://t.co/oasCn72rxt pic.twitter.com/lm4au2fWkn

— Santiment (@santimentfeed) June 22, 2022

The immediate cause of the Matic price increase is thought to be the project's accomplishment of carbon neutrality.

Polygon announced the retirement of $400,000 in carbon credits representing 104,794 tonnes of greenhouse gas emissions. The platform has committed $20 million to a series of community initiatives aimed at leveraging Web3 to create a more sustainable future. MATIC's hourly trend has broken out of the ascending triangle pattern. This has resulted in a 30 percent increase in the price of MATIC in the last few days.

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Polygon (MATIC) is the native cryptocurrency that powers the Polygon Network, a layer 2 platform that was launched in 2017. According to CoinGecko data, MATIC is currently ranked 19th in terms of market value. The network enables developers to build and deploy blockchains that are compatible with the Ethereum blockchain.

MATIC is experiencing a buildup

Despite the crypto market's overall downward trend, on-chain data shows that a few of the wealthiest investors have been increasing their holdings of MATIC tokens.

There has been an influx of so-called MATIC sharks and whales. This is notable, particularly for the tiers of Polygon token holders with coin holdings ranging from 10,000 to 10 million coins, who have "collectively added 8.7 percent more to their bags" since May 9, according to Santiment data.

It is worth noting that the price of MATIC dropped by 50% during the same time period, indicating that many whales are optimistic about its long-term revival.

According to CryptoQuant statistics, the total MATIC balance across all cryptocurrency exchanges increased from 1.21 billion to 1.37 billion between May 1 and June 23, indicating potential sell pressure in the near future.

Whale purchasing is not always a positive indicator; given the tight conditions in the cryptocurrency and conventional markets, a further price surge could potentially drive whales to flip MATIC for a quick profit, resulting in false recovery signals.

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