Polygon Foundation Deposit 6M MATIC to Binance: Major Sell-Off on the Horizon?

Polygon (MATIC) remains a crucial part of the Ethereum (ETH) ecosystem, boasting a total value locked (TVL) of approximately $796 million and a stablecoins market capitalization of about $1.266 billion. Its contribution to the Ethereum blockchain includes facilitating the development of scalable and secure DeFi projects.

In a recent development, Wirex, a London-based payment firm with over 6 million users, has announced a strategic partnership with Polygon. They plan to leverage Polygon’s open-source Chain Development Kit (CDK) to create an application-specific blockchain called W-Pay.

Is Polygon Foundation Selling MATIC?

However, there are some concerns in the community regarding the activity of the Polygon Foundation, a non-profit organization committed to supporting the Polygon network through research, development, and education. Lookonchain, an on-chain analysis platform, has observed notable deposits of MATIC tokens from the Polygon Foundation into Binance over the past month.

For instance, a Polygon wallet associated with the foundation deposited approximately $3.35 million worth of MATIC tokens in the last two days. Additionally, this same wallet address has made deposits of around $2.57 million in the past 30 days. These deposits on Binance have raised questions, especially given the ongoing challenges faced by MATIC’s price in the midst of bearish sentiments within the cryptocurrency market.

MATIC Price Analysis

As of Thursday, MATIC was trading at approximately 56 cents in the early Asian market, reflecting a modest 4 percent gain over the past five days. However, MATIC’s price remains under significant downward pressure, primarily due to resistance from the 50 and 200-weekly Moving Averages (MA).

Related: Polygon Price Analysis: Trapped In A Triangle MATIC Price Are At Crossroads, $0.50 Drop or $0.70 Jump?

All in All…

While Polygon continues to play a vital role in the Ethereum ecosystem, recent actions by the Polygon Foundation have raised concerns within the community. The foundation’s deposits of MATIC tokens on Binance, especially during a challenging market period, have generated questions about their intentions. Meanwhile, MATIC’s price faces resistance from key Moving Averages, suggesting a challenging road ahead for the token.