Polygon (MATIC) Fails to Rebound After Being Labeled Security by SEC

MATIC hit levels not seen since the start of the year.

Woman on a dizzy Polygon island, losing hope.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon (MATIC) has yet to recover from the initial dump after the SEC labeled it a security.
  • MATIC fell to levels not seen since January 2023.
  • A whale might be responsible for the failed recovery.

The U.S. Securities and Exchange Commission (SEC) named many crypto coins securities in its lawsuits against Binance and Coinbase. One of them is Polygon’s native token MATIC.

However, right after the second lawsuit against Coinbase, all crypto tokens rallied and erased previous losses, including those labeled as securities. MATIC, though, failed to recover.

Polygon (MATIC) Fails to Recover After SEC Security Comments

Polygon’s native token MATIC has again fallen out of the top 10 cryptocurrency list. This time, MATIC failed to recover after the initial dump following the SEC’s lawsuits against Binance and Coinbase.

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MATIC is currently trading at $0.78, down 4.9% on the day and 11.4% in the past seven days, according to data from CoinGecko. This is the first time since early January of this year that MATIC fell below the $0.80 mark.

One reason for the failed recovery might be a whale that presumably sold millions of dollars worth of MATIC a day ago. 

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According to blockchain analytics firm Santiment, someone transferred 115.3 million MATIC, worth around $95 million at the time of transfer, from a cold wallet to Binance. This potentially increased selling pressure, preventing MATIC from rebounding like other tokens did.

Solana (SOL), MATIC’s neighbor in the top 10 cryptocurrency list, reentered again. SOL has over $600 million more in market capitalization than MATIC.

On the Flipside

  • MATIC has remained one of the best-performing digital assets in the last year or so. It’s up by around 31% in the past year.

Why This Matters

Polygon’s MATIC is one of the most sought-after tokens in the crypto market. It’s surprising to see whales sell millions of tokens, especially when Polygon is developing multiple Ethereum scaling solutions like Polygon zkEVM. However, one reason for the selling might be that Polygon will do an additional airdrop for Polygon zkEVM users.

Read more about Rocket Pool’s deployment on zkSync Era:

Rocket Pool to Allow Users to Stake ETH on Ethereum Layer-2 zkSync Era

Read more about Circle deploying USDC on Arbitrum:

Circle to Deploy USDC on Arbitrum: Here’s What This Means

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Arturas Skur

Arturas Skur is a cryptocurrency news reporter at DailyCoin who covers Web 3.0 domains, DeFi, and Ethereum Layer-2s. With over five years of experience in journalism and public relations, Arturas brings his critical thinking and analytical abilities to deliver insightful news stories. In his free time, he enjoys hiking, playing with his dog, and reading.