MATIC, the native token of Ethereum’s most popular scaling solution Polygon, has seen a massive rally over the past few days. The token has gone from $0.94 to $1.13 within a span of 72 hours. Blockchain analytics firm Santiment tweeted the details of a whale transfer earlier today that most likely triggered the rally.
🐳 On Wednesday, the largest $MATIC transfer of the year occurred just prior to this +20% pump. This address had already been holding 585k #Ethereum as well. Often times, just one or a few whale addresses is all it takes, like in this #Polygon example. 👀 https://t.co/9qALIlE5Lu pic.twitter.com/EjqIOld5ml
— Santiment (@santimentfeed) January 28, 2023
According to data gathered by Santiment, the transfer occurred in the early hours of 25 January. 59 million MATIC worth $56 million were sent from one whale address to another, precisely at the local bottom of the token. This was the largest transfer in the past six weeks.
What followed was a 20% rally, which took MATIC from $0.95 to a maximum of $1.18 in two days, marking an 11-week high. The token has since come down to $1.13. Data from Santiment shows that the whale address from which the tokens were transferred held a whopping $13.6 billion worth of crypto at the time of writing. It still holds 68 million MATIC.
The receiver’s address currently holds $8.8 billion worth of crypto. This includes $5.4 billion worth of BUSD accounting for 61.1% of the wallet. The wallet also held 585,000 ETH worth $931 million and $1.3 billion of USDT. Interestingly, the wallet had no MATIC tokens prior to the whale transfer.
The rise in MATIC’s price attracted opportunistic traders that drove the token’s trading volume to levels which were last seen in November 2022. The daily trading volume of MATIC reached $1.21 billion on 27 January, marking a 10-week high.