Home Altcoins News Celsius Sparks MATIC Sell-off with 26 Million Token Transfer to Exchanges

Celsius Sparks MATIC Sell-off with 26 Million Token Transfer to Exchanges

In a recent development, Celsius, a major player in the cryptocurrency space, has made headlines by transferring a staggering 25.76 million MATIC tokens to prominent exchanges Binance and Crypto.com. This move has intensified selling pressure on MATIC, a cryptocurrency that gained attention after reaching $1 in December 2023 but has faced challenges, currently down by over 25% from its local peak.

The on-chain analysis platform Spotonchain reveals the specifics of Celsius’ deposit, indicating that 22.73 million MATIC, valued at $18.79 million, was sent to Binance, while 3.02 million coins worth $2.47 million found their way to Crypto.com. Despite these large deposits, Celsius still holds 34.08 million MATIC, with a market value of approximately $27.88 million based on current rates.

A noticeable trend emerges as the MATIC price experiences a decline following each deposit from Celsius, pointing towards the possibility of the entity selling the tokens after transferring them to centralized exchanges.

The broader context involves ongoing controversies surrounding the allocation of MATIC tokens by the Polygon Foundation. Recently, an on-chain analysis platform raised concerns, contributing to a more than 25% drop in the token’s price from its local high of $1.09.

MATIC gained attention when it surpassed $1 in December 2023, but since then, its price has faced challenges, currently down by over 25% from its recent peak. The on-chain analysis platform Spotonchain reveals that Celsius deposited substantial funds onto centralized exchanges, specifically 22.73 MATIC worth $18.79 million to Binance and 3.02 coins valued at $2.47 million to Crypto.com.

Despite the large deposit, Celsius still retains 34.08 million MATIC, which holds a market value of approximately $27.88 million based on current rates. The MATIC price experienced a noticeable drop after each deposit from Celsius, indicating a likelihood of the entity selling the tokens following the transfer to centralized exchanges.

An on-chain analysis platform previously raised concerns about Polygon Foundation’s allocation of MATIC tokens. Amidst these controversies, the token’s price has seen a decline of over 25% from its local peak of $1.09. Recent data also shows a MATIC deposit surplus on centralized exchanges, with the balance of MATIC tokens increasing by 11.48 million in the past seven days.

A closer look at MATIC’s recent deposit activity on centralized exchanges reveals a surplus. Over the past seven days, the balance of MATIC tokens on these exchanges increased by 11.48 million, indicating heightened activity and potential market volatility.

As Celsius transfers MATIC tokens to exchanges, the potential for increased selling pressure looms. Simultaneously, concerns persist regarding Polygon Foundation’s token allocation, adding to the intricacies of the current market scenario. Analysts are cautiously eyeing the $0.55 mark, considering it as a potential buying opportunity amidst the ongoing market complexities.

This latest development raises questions about the dynamics between large entities, decentralized projects, and market sentiment. The crypto community is closely monitoring the situation, and investors are advised to stay informed and exercise caution in response to these market fluctuations.

In conclusion, the transfer of MATIC tokens from Celsius to exchanges has heightened selling pressure, impacting the cryptocurrency’s price. Simultaneously, concerns regarding the Polygon Foundation’s token allocation persist, contributing to the complex dynamics of the crypto market. Analysts, in the midst of these intricacies, cautiously identify the $0.55 range as a potential buying opportunity for MATIC, emphasizing the importance of monitoring higher time frames for a comprehensive market perspective.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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