In a significant development for the cryptocurrency, Binance, one of the world’s largest cryptocurrency exchanges, declared on September 8 that it would cease support for Polygon Network assets on its NFT Marketplace by September 26, 2023. This announcement has had a notable impact on Polygon’s (MATIC) price, causing it to dip by an additional 10%, reaching a new low for 2023. Now, the question arises: can major investors, often referred to as “whales,” step in to defend the crucial support level of $0.50?
Increased MATIC Tokens in Exchange Reserves
The Binance delisting notice seems to have triggered a significant influx of MATIC tokens into various cryptocurrency exchanges. On September 2, according to on-chain data gathered by CryptoQuant, Polygon investors held 942.06 million MATIC tokens in exchange wallets. However, this figure had surged by an additional 41 million tokens to reach 983.7 million MATIC by September 11.
It’s noteworthy that approximately 3.5 million of these new inflows were recorded between September 9 and September 11, right after the announcement regarding the removal of Polygon assets from Binance’s NFT Marketplace.
Assessing the Future of MATIC
As MATIC holders brace themselves for potential further selling pressure, the future of Polygon’s price remains uncertain. The influence of large-scale investors and market sentiment will play a pivotal role in determining whether the $0.50 support level can be defended.
The crypto community will undoubtedly be closely monitoring developments surrounding Polygon, including any potential interventions from significant investors, as the cryptocurrency navigates this challenging period following Binance’s critical announcement.
