🐋 Whale accumulates MATIC despite price making new lows on delistings
Polygon (MATIC) is facing an uncertain future. MATIC is being migrated to the new POL token, facing delistings. Despite this, a whale was seen withdrawing MATIC from Coinbase.
Polygon remains one of the top L2 chains with a first-mover advantage. However, the MATIC token is facing headwinds on the market. The token is in the process of swapping and is still seeking direction.
Despite the price weakness, a whale has been accumulating MATIC for the past few days. The whale’s wallet accrued more than 18.79M MATIC, valued at $6.2M. The whale withdrew MATIC from Coinbase in the past three days, storing the tokens in a highly liquid wallet also containing $54M in Ethereum (ETH).
Withdrawing MATIC from Coinbase was not done for the sake of migration. Coinbase has arranged to migrate from MATIC to POL by automatically switching all balances. Instead, the whale has stored MATIC with the potential for future appreciation. Native MATIC on the Polygon chain will convert automatically to POL, and is not at a risk for losses.
The whale’s wallet has invested in one of the most successful rounds of Ethereum-based projects, including the top DeFi protocols. Polygon is among this generation of projects, though it is now struggling to find its way among more active L2 chains.
Polygon still carries more than $1B in value locked, with active versions of Uniswap and Aave. The Polygon L2 chain also carries significant inflows of more than $732M from Ethereum. The chain has robust legacy liquidity, but faces headwinds from the fast and wide adoption of Base. During the 2021 bull market, Polygon served a similar role as Base, carrying the wave of NFT, gaming and DeFi projects.
