Why did Polygon (MATIC) rally 23% in a day?

Paigambar Mohan Raj

Famous crypto project Polygon (MATIC) rallied 23.8% in the last 24 hours. Additionally, the token is up by 16.1% weekly, causing a stark divergence from the overall crypto markets.

In a recent blog post, Polygon revealed that it had achieved one of its significant carbon neutrality milestones, which may be one of the many reasons why the project has rallied upwards. The network collaborated with KlimaDAO, a decentralized collective of environmentalists, developers, and entrepreneurs, to achieve the carbon neutrality goal.

On the other hand, according to on-chain data, affluent investors are accumulating MATIC despite the bearish market sentiment. According to known crypto analytics firm, Santiment, Polygon (MATIC) holders in the 10K to 10 million brackets have increased their holdings by 8.7%.

However, there is a downside. As per the data available on Cryptoquant, Polygon’s exchange reserves saw a spike of 8% in the last seven days. This indicates an intense selling pressure for the token. The breakout could be a false recovery signal given the current market scenario.

Source: Cryptoquant

Polygon’s active addresses have also increased by 47% in the last 24 hours, along with a 1035% increase in transfer volume.

Source: Cryptoquant

Other developments on Polygon

Apart from the metrics above, the project has also seen a range of collaborations. The USDC stablecoin on Polygon is now available on FTX, one of the largest exchanges in the world.

Polygon also revealed a new NFT collaboration with Bentley, the famous car manufacturer. A one-time NFT drop on the carbon-neutral network, restricted to only 208 pieces, will signal Bentley’s entry into the NFT market. The NFTs may go live in September of 2022.

At press time, MATIC was trading at $0.505890. The project is up by 23.8% in the last 24 hours and 16.1% in the previous week. However, it is still 16.7% down in the 14-day charts. Additionally, MATIC is still 82.6% down from its all-time high of $2.92.