The crypto market anticipates a bullish trend in the next few months, with the upcoming Bitcoin halving. During this period, several altcoins went on solid rallies. One such is MATIC, a Layer-2 Ethereum scaling token, which has observed a noteworthy increase in its price, surpassing the $0.80 threshold for the first time since July 2023.
Data suggest that accumulation activity has provided firm support to the bullish momentum.
- The steady ascent of MATIC’s price, in tandem with other rallying altcoins this week, is attributed to users within the Polygon ecosystem actively accumulating the token.
- MATIC holders seem to be steadily accumulating even as MATIC held on gains.
- Santiment’s latest analysis reveals that key wallets holding 100K-10M MATIC have played a role in this surge by accumulating an additional 42.88 million MATIC tokens, equivalent to nearly $35 million since October 24.
📈 With #altcoin milestones continuing to fire off, #Polygon has steadily risen back to $0.80 and increased its market cap by +54% in just 3 weeks. And in the past 2 weeks, the key wallets holding 100K-10M $MATIC have supported this rise by accumulating. https://t.co/i7lMmBgRbX pic.twitter.com/dWGXJ8CzOK
— Santiment (@santimentfeed) November 9, 2023
- Another factor driving MATIC’s price upward is the heightened activity on the asset’s blockchain.
- MATIC transactions valued at $100,000 and above have reached 161, marking the highest level since July 2023. The increased whale activity, coupled with accumulation by wallet addresses, could continue to play a crucial in the upward trajectory of MATIC’s price.
- The Polygon ecosystem is gearing up for major changes as part of its recently released Polygon 2.0 roadmap, which includes the subsequent transition of MATIC token to POL.
- The Ethereum scaling solution migrated the POL token contract to the Ethereum network in October, setting the stage for it to replace MATIC in the future, a move that is expected to “power a vast ecosystem of zero knowledge-based layer 2 chains.”