Polygon: 92% of MATIC investors underwater, but here’s the silver lining

Lavina Daryanani
Source: Analytics Insight

While Terra ecosystem’s coins—LUNA and UST—were the talk of the crypto town owing to their 60% and 40% price dips, Polygon was another trending conversational topic. On Twitter alone, over 23.9k Polygon-centric tweets were made, the main reason being the Insta-NFT development.

Source: Twitter

As such, selected Instagram users would now be able to post and share NFTs on their handles as a part of the platform’s pilot test. The same would be powered by Polygon. Per the co-founder Mihailo Bjelic, the Ethereum-based scaling solution team had been working with Meta’s Web3 team for months. Announcing the same, he said,

“Ok fam it’s public: Meta is making a major foray into Web3, and 0xPolygon will be powering it! We have been working with the Meta Web3 team for months; I’m super excited about everything that’s coming!”

The said development did not have an immediate impact on the ecosystem’s native token’s price. However, on Tuesday, MATIC was one of the few coins from the top 100 that was trading in green. After noting a close-to 1% incline, the 19th ranked alt was priced at $0.9361 at press time.

Source: CMC

Is there a cause of concern for MATIC investors?

Well, at this stage, most MATIC HODLers are underwater. Per data from ITB, 92% of investors were ‘out of the money,’ while the remaining 8% alone were either ‘in the money’ or ‘at the money.’

Source: IntoTheBlock

Per investor psychology, seldom do market participants close their positions when in a loss. So, keeping the current profitability in mind, it becomes quite obvious that MATIC HODLers have no incentive to sell their tokens at the moment.

In fact, at press time, market participants were seeing accumulating MATIC. Over the past 12 hours, the buyer-seller trade difference reflected a positive value of 8.8 million tokens, while over the past 6 hours, the number stood at an elevated 10.86 million.

Now even though in the 1-hour window, sell traders managed to assert their dominance, it should be noted that the figure in question [370k MATIC tokens] was quite shallow.

Source: ITB

Thus, with participants scooping up tokens and the buying bias gradually setting in, MATIC might perhaps be one of the first few alts to negate its recent losses.