Why Is Polygon (MATIC) Pumping?

Polygon MATIC/USD, previously known as Matic Network, has surged by 19.89% in the past 24 hours. As Bitcoin BTC/USD and Ethereum ETH/USD stagnate in their current ranges, moving sideways, the altcoin jumped off its trend and added over $300 million to its market cap after an announcement.

 Source: Trading View MATIC/USDT

As observed in the chart, MATIC was trading around the $0.39 level on Wednesday before surging to its press-time price of $0.5. As per data from CryptoQuant, MATIC’s exchange outflow (seven-day moving average of mean coins outflow from exchanges) has increased by 470% in 24 hours. The high value indicates investors who withdrew a lot at once are increasing recently, also indicating a decrease in selling pressure.

Crypto analysis firm Sentiment shared comments on the current surge saying, Matic “sharks and whales” have been in a “big accumulation trend for about six weeks.” It pointed out how the tiers of holders “ranging from 10,000 to 10 million coins held have collectively” added 8.7% more to their bags in this timeline.

Yesterday, the Ethereum-based I-O-B (internet of blockchains) ecosystem announced Polygon ID, a self-sovereign identity solution for DAO (Decentralized autonomous organization) governance.