As the price of Polygon (MATIC) undergoes a correction, whales have been buying the dip, indicating a recovery is on the horizon.
After a stellar performance between mid-October and early November, the price of Polygon (MATIC) has retraced, dropping from $0.92 to $0.76 at the time of writing. The earlier rally came in the buildup to news that Polygon Labs had initiated the conversion of its MATIC token to a newly released POL token.
However, the event’s euphoria has since subsided, with speculators reducing exposure to the crypto asset. At the same time, though, on-chain data shows that whales have remained keen on accumulating Polygon (MATIC).
According to a metric shared by prominent crypto trader Ali Charts, whales have purchased over 120 million MATIC tokens in the past week alone. The total purchase is the equivalent of $90 million buying pressure for the crypto asset.
#Polygon | Recently, $MATIC whales have been on a buying spree, scooping up over 120 million #MATIC in the past week – that's a hefty $90 million investment! pic.twitter.com/uqXopGoqvy
— Ali (@ali_charts) November 29, 2023
MATIC’s price action shows a corresponding impact, with the token recovering from recent lows around $0.72. The token has also sustained most of its monthly gains, increasing by 20% within the period under consideration.
Sustained whale buying typically marks market bottoms on both long-term and short-term horizons. Hence, MATIC holders will remain hopeful that the recent purchases and increased network activity will help the asset continue on its path to recovery.
Polygon Sees Massive Jump in User Activity
Beyond the evolution of the Polygon network and MATIC price action, the blockchain ecosystem has seen remarkable growth. The number of active addresses on the network has risen from around 120,000 to 385 million in the past three years.
More recently, the network witnessed a surge in user transactions. Daily transactions reached yearly highs above six million, leading to a corresponding increase in network fees.