Polygon (MATIC) Witnesses 742% Surge in Large Transactions
Polygon (MATIC) has recently experienced a sudden spike in large transactions. The massive fund movements on this network have caught the attention of market observers, triggering speculations about the motives and actions of crypto whales.
According to a report by News BTC, the catalyst behind this wave of activity appears to be the recent legal demands filed by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase.
Spike in Large Transactions on the Polygon Network
As reported by News BTC (7/6/23), large transactions in the crypto market are often seen as indications of whale activity, providing insights into the strategies they may be formulating.
According to IntoTheBlock, an on-chain analytics company, large transactions are defined as transactions exceeding $100,000 or approximately Rp1.4 billion. Furthermore, IntoTheBlock reports that there has been a significant surge in the volume of large transactions on the Polygon network, reaching $64.44 million or approximately Rp959 billion, representing a 742% increase in the last 24 hours.
In a series of regulatory actions, the SEC has recently filed legal demands against Coinbase, a leading crypto exchange based in San Francisco. This legal action comes just a day after the regulator demanded Binance, one of the world’s largest crypto exchanges, for alleged securities violations.
The SEC accuses Coinbase of operating as a broker, national securities exchange, and clearing agency without registering with the SEC. Additionally, the regulator also alleges that the crypto assets available on the Coinbase platform fall “squarely under the securities law.” The crypto assets mentioned in this demand include SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
The demand against Binance and its CEO, Changpeng “CZ” Zhao, also includes allegations of violating federal securities laws. The SEC alleges that Solana, Cardano, Polygon, COTI, Algorand, Filecoin, Cosmos, The Sandbox, Axie Infinity, and Decentraland are securities.
Impact of SEC Demands on the Crypto Market
SEC’s legal demands against Coinbase and Binance have triggered diverse reactions in the crypto market. As of June 7, 2023, the native token of Polygon, MATIC, was trading at $0.804240 or approximately Rp11,977, according to CoinGecko data.
In the last 24 hours, MATIC has experienced a 2.8% decline, while the past seven days have seen a significant drop of 9.6%.
In conclusion, the sudden increase in large transactions on the Polygon network indicates that crypto whales may be responding to the SEC’s legal demands against Binance and Coinbase.
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