Evening
Layer 2 scaling solution, Polygon is breaking its bearish trend, posting one of the biggest price rally over a period of last seven days.
Matic is currently trading at $0.538 up by 20% over last 24 hours. This also marks 39% gains in a period of seven day, defying the gains of all other major cryptocurrencies. Today, Matic reached as high as $0.543 before price showing a bit of correction.
However current Matic price is still considerably lower than all time high of $2.92 in December last year. Matic has already tanked to as low as $0.338 a few days ago, marking 82% decline from all time price.
Several factors have contributed to the current Matic price rally. First reason is the Matic whales accumulating the token over past few months. Data from on-chain data provider Santiment suggests, the Matic whales holding between 10,000 and 10,000,000 MATIC have added 8.7% Matic on average to their position since May 9.
Another contributor to price rally is Matic partnering up with on-chain carbon market KlimaDAO to achieve the previously committed goal of carbon neutrality. Yesterday, Polygon announced that it has retired $400,000 in carbon credit, which make up for the whole emission contribution by network since its inception i.e. 104,794 tones of greenhouse gases.
Polygon co-founder Sandeep Nailwal in an accompanying statement stressed the need of blockchain industry to stop adding to the environmental problems and also reiterated Polygon's commitment to reach carbon neutrality.
Back in 2021 Polygon announced its goal to become carbon negative by funding projects the utilize technology to combat climate change and purchase carbon credits.
However whales accumulating doesn't necessary suggest Matic a buy as bear pressure is expected at least in short term. As per data by CryptoQuant, Matic held in exchanges have seen sharp spike 1.21 billion to 1.37 billion between May 1 and June 23, so short term sell pressure is imminent.
