Millions of dollars worth of Polygon’s MATIC tokens were sent to Binance and Coinbase on Friday night, ahead of a nearly 30% drop in the price of the cryptocurrency on Saturday.
Data from blockchain analytics firm LookIntoChain shows that a total of 14 million MATIC tokens, worth over $10 million, were sent to Binance and Coinbase addresses between 11:00 PM and 11:30 PM UTC on Friday.
The large transfers came just hours before the price of MATIC began to decline. At 11:00 PM UTC, MATIC was trading at $0.64 per token. By 11:30 PM UTC, the price had fallen to $0.48 per token.
The price of MATIC continued to decline on Saturday, reaching a low of $0.42 per token. As of 10:00 AM UTC on Sunday, the price of MATIC is trading at $0.45 per token.
It is not clear why the large transfers of MATIC were made to Binance and Coinbase. However, the timing of the transfers suggests that they may have been made in anticipation of a decline in the price of the cryptocurrency.
The large transfers of MATIC to Binance and Coinbase could have contributed to the decline in the price of the cryptocurrency. When large amounts of tokens are sold on an exchange, it can cause the price of the token to fall.
The decline in the price of MATIC could be due to a number of factors, including the recent lawsuits filed against Binance and Coinbase by the U.S. Securities and Exchange Commission. The SEC alleges that Binance and Coinbase have violated securities laws by selling unregistered securities.
— Lookonchain (@lookonchain) June 10, 2023
The lawsuits filed by the SEC could have caused investors to lose confidence in Binance and Coinbase, and in the MATIC token. This could have led to the decline in the price of MATIC.
The decline in the price of MATIC could also be due to the broader sell-off in the cryptocurrency market. The cryptocurrency market has been in a downtrend since November 2021. This sell-off could have contributed to the decline in the price of MATIC.
The decline in the price of MATIC could be a temporary setback. However, it is also possible that the decline could be a sign of more problems to come for the MATIC token.