Polygon, a cryptocurrency, has faced challenges in the past 24 hours due to a surge in MATIC exchange supply, as per on-chain data.

Whale Deposits Huge Stack, Polygon Exchange Supply Spikes

According to Santiment, a single whale has deposited about $95 million worth of MATIC to Binance in the last day. The relevant indicator here is the “supply on exchanges,” which shows the total percentage of the Polygon circulating supply held in centralized exchange wallets. As a net number of coins enters exchange wallets, the value of the metric rises. This trend is typically bearish for the asset’s value as investors usually deposit their coins to exchanges for selling purposes. Conversely, downward trends suggest that investors are withdrawing their coins from exchanges, a sign of accumulation, and hence, bullish for the cryptocurrency’s price.

Supply on exchanges has seen a sharp uptrend and currently stands at approximately 9.43%, indicating that over 9% of the entire circulating supply of the asset is in wallets of exchanges. The rapid increase in exchange supply can be attributed to a single whale who transferred 115.3 million MATIC, or $95.4 million, to Binance.

Some days back, a price crash for MATIC and other digital assets occurred after the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO over alleged fraud. The market has witnessed a rebound since then, but Polygon’s price has continued to decline due to the massive deposit from the whale responsible for the surge in exchange supply, which may have been made with the intention of dumping.

MATIC Price

At present, MATIC trades at around $0.8051, down 9% over the past week.

Featured image from iStock.com, charts from TradingView.com, Santiment.net