This week was profitable for the majority of the crypto market, and many altcoins, including MATIC, the Polygon network’s currency, set new records. Investors’ bullishness increased in tandem with growing prices, and MATIC appeared to be reaping the benefits. However, this move by a few investors may force MATIC to slow down its expansion.
Several Altcoins are Already Flipped By MATIC
Earlier this week, the altcoin flipped several significant tokens in the top 20 list of cryptocurrencies but is presently ranked at 21st position, well thanks to a 41.83% rally. Polygon ranked at 21st position with a market capitalization of $12.715 billion, outperforming several renowned crypto projects.
Polygon Price Chart – Source: CoinMarketCap
Polygon has been pushing the envelope on a number of fronts in order to make itself available to everyone through a variety of means. One such initiative was the organization of India’s first hackathon, BUILDIT. In fact, in an effort to expand its reach in Asia, the company recently invested in Colexion, Asia’s largest NFT platform. As a result, in addition to development, investment has become an instrument for their expansion.
But first, let’s talk about an investment move that could slow Polygon’s growth.
What Are Polygon Bulls Doing?
Most investors took advantage of the rise to cash in profits, and we could see the impact on-chain as well. Investors began selling as the price rose, and in less than ten days, almost 100 million MATIC worth nearly $200 million were traded.
Long-term holders (LTHs) made up a major portion of these sellers, who shifted their holdings in three days, consuming 26.9 billion days.
When the market is not performing well or when a potential reversal is being observed, cashing out is a good decision. However, cashing out when the asset appears to be on the rise can have a negative impact.
As a result of this selling, MATIC is currently down nearly 2.23% for the day. This could be the reason why investors are losing money currently, despite the fact that MATIC holders have been profiting for the entire month of October. Indeed, as a result of the great performance, profit margins for investors increased from 44.16 percent to 93.24 percent at the time of this report.
Furthermore, the same increase resulted in an increase in participation, as both active and new addresses increased this week.
As a result, if investors want to keep these figures up while avoiding a reversal in the market cap’s growth, they should HODL their MATIC.