88% of MATIC holders incur losses: does Polygon have a chance of recovery
Date: 2023-07-10 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
The native token of the L2 blockchain Polygon is going through hard times: after the SEC called MATIC a security, its price fell to an annual low.
The readings of key on-chain metrics report that at the moment only 8.2% of asset holders are profitable. Let's figure out how long this trend will last.
88% of Polygon holders incur losses
According to the analytical platform IntoTheBlock, the majority of Polygon holders – 88% – will suffer significant losses if they decide to sell MATIC at the current price.
In contrast, only 8.22% of addresses will make a profit, and approximately 3.58% will break even.
The number of active addresses in the network has decreased again
Over the past seven days, the number of active addresses on the Polygon network has decreased by about 7.8%. This means that users lose interest in MATIC and switch to other assets.
However, there is also a positive trend: the number of new addresses increased by about 18.7%. If they start interacting with the blockchain and making transactions, this can have a positive effect on the price of the token.
The withdrawal of MATIC from exchanges exceeded the volume of deposits
Over the past 24 hours, users have transferred more than 202 thousand MATIC to exchanges. However, the long-term trend remains downward: the outflow of tokens from platforms for 7 and 30 days amounted to 3.82 million and 15.68 million coins, respectively.
The reduction in the supply available on the exchanges indicates a decrease in selling pressure. This can be seen as a bullish signal for the Polygon price.
Retail investors control only 15% of Polygon's supply
A detailed study of the Polygon ecosystem reveals a significant presence of whale wallets, each of which holds more than 1% of the total MATIC. One such address owns an impressive 37.7% of the total supply, while eight others collectively control 30.2% of the coins. Another 80 addresses with smaller balances hold approximately 16.89% of the tokens.
Thus, retail investors account for only 15.21% of Polygon's supply.
Given the fact that a huge amount of MATIC is concentrated in the hands of large players, the further price dynamics of the asset will depend primarily on their actions.
