Polygon’s MATIC swept off exchanges in large volumes, token eyes recovery


  • Polygon’s native token MATIC supply on exchanges dropped to 8.56% on January 10. 
  • Polygon chain’s announcement of alternative infrastructure Libre could catalyze gains in MATIC.
  • MATIC price gears up for recovery, posts nearly 2% gains on the day. 

Ethereum scaling chain Polygon’s native token MATIC left exchanges in large volumes. This drove its exchange reserves down from 9.19% of the total supply in December to 8.56% on January 10. 

The Polygon chain announced the launch of Libre in a recent blog post; this could act as a catalyst for MATIC price recovery. 

Also read: Bitcoin ETF announcement hack reveals BTC price upside is likely capped

Polygon introduces Libre for global alternative investment funds

Polygon, the largest Ethereum scaling chain, introduced a new alternative investment infrastructure designed for asset managers and distributors. This product is called Libre and it is a dedicated chain built with Polygon’s Chain Development Kit (CDK). 

Polygon’s Libre has acquired legal and regulatory compliance and its objective is to help alternative investment management firms issue their own tokenized assets. The chain will further offer access to value-add services in the digital asset ecosystem, powering collateralized lending and automated rebalancing of separately managed accounts. 

Libre’s launch could catalyze MATIC price recovery as it is expected to boost the relevance of Polygon among market participants. 

MATIC could rally alongside ETH

MATIC price yielded nearly 2% gains on the day, amidst the false Bitcoin Spot ETF approval announcement from the Securities and Exchange Commission (SEC) and Ethereum’s climb above $2,300 on Binance. 

MATIC holds a 0.85 correlation with BTC and 0.91 with Ethereum, according to Macroaxis data. This implies a rally in Ethereum price could act as another catalyst for MATIC price. While the ETF approval announcement revealed that BTC gains are capped below $48,000, it pushed Ethereum price to a peak of $2,431 as of January 10. 

The SEC’s deadline for a decision on the Bitcoin Spot ETF is January 10. Ethereum’s reaction to the news could influence MATIC because of the high correlation between the two assets. 

Another catalyst supporting MATIC gains is its dwindling supply on exchanges. Between December 11 and January 10, MATIC reserves on exchanges dropped from 9.19% to 8.56% as the token flowed out of exchange wallets. This is typically considered a bullish sign for Polygon’s native asset as it reduces selling pressure on the token on exchange platforms. 

MATIC

MATIC supply on exchanges. Source: Santiment.

At the time of writing, MATIC price is $0.8179 on Binance. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC shows weakness, bears aiming for $90,000 mark

Bitcoin Weekly Forecast: BTC shows weakness, bears aiming for $90,000 mark

Bitcoin (BTC) price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year. 

More Bitcoin News
ONDO Price Forecast: Ondo Chain launched while TVL rises to $654 million

ONDO Price Forecast: Ondo Chain launched while TVL rises to $654 million

Ondo price is nearing its key weekly resistance of $1.38 on Friday, and a firm close above this level hints at a rally ahead. Ondo launches its Ondo Chain, a new Layer 1 blockchain purpose-built for institutional-grade RWAs.

More Ondo News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP are at risk of for further declines

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP are at risk of for further declines

Bitcoin (BTC) hovers around $97,400 on Friday after losing nearly 5% in the last three days. Ethereum (ETH) and Ripple (XRP) fail to recover and face rejection from their key levels, hinting at further corrections.

More Cryptocurrencies News
XRP ETF gains traction as SEC acknowledges Grayscale filing for Solana and Litecoin funds

XRP ETF gains traction as SEC acknowledges Grayscale filing for Solana and Litecoin funds

Ripple's XRP was in the limelight on Thursday following the Chicago Board Options Exchange (Cboe) 19b-4 filing to the SEC to list and begin trading XRP exchange-traded funds (ETFs) for asset managers Canary Capital, WisdomTree, 21Shares and Bitwise. 

More Ripple News
Bitcoin: BTC shows weakness, bears aiming for $90,000 mark

Bitcoin: BTC shows weakness, bears aiming for $90,000 mark

Bitcoin (BTC) price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year. Traders should watch FTX's upcoming repayments to creditors starting on February 18, which could bring in volatility for Bitcoin prices.

Read full analysis
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

BTC

ETH

XRP