Polygon (MATIC), once a promising token with substantial growth potential, has hit a rough patch, with only 2% of its holders currently in profit. According to data from IntoTheBlock, this marks the lowest profitability rate ever recorded for MATIC holders, indicating that a majority of investors are holding at a loss.
The current price range between $0.36 and $0.40 has become a pressure point for many investors, with approximately 7 billion tokens held by 8,830 addresses. This suggests that the majority of holders are trapped, waiting for a shift in market conditions to reverse their fortunes.
Whale Dominance Fuels Market Volatility
A key factor behind MATIC’s current volatility is the dominance of whales in its market. Data shows that large-scale investors, or “whales,” hold 74.79% of the total MATIC supply. This high concentration of ownership has far-reaching consequences for market stability, as whale activity often triggers unpredictable price swings.
For smaller retail investors, this whale dominance can be unsettling. When a small number of large holders control the majority of tokens, the market becomes prone to significant and sudden price movements. Just a few trades from these major players can swing the price of MATIC, leading to increased volatility and potential liquidations.
According to AMBCrypto’s analysis of Coinglass liquidation map data, MATIC has seen a spike in liquidations in the price range of $0.37 to $0.40. This suggests that the token may continue fluctuating within this range for some time before any major movement occurs.
What’s Next for MATIC Holders?
With only 2% of holders in profit and whales controlling nearly three-quarters of the supply, MATIC’s outlook remains challenging. The current price range of $0.36 to $0.40 has become a battleground for both retail and institutional investors, and short-term volatility appears inevitable.
For retail investors, navigating this uncertain terrain will be difficult. The concentration of whale ownership, combined with liquidation pressure at key price levels, raises concerns over liquidity and further price instability. If MATIC prices continue to hover in this range, smaller investors may be forced to hold at a loss until the market regains momentum.
However, MATIC’s long-term prospects may still offer hope. Polygon’s layer-2 scaling solutions for Ethereum continue to gain traction, and future developments could attract renewed interest from investors. Yet, in the short term, MATIC holders may face a bumpy ride as they wait for a market recovery.
Also Read: Polygon’s Whale Shift – Is a $0.57 Price Target in Sight After 50% Drop in Largest Holders?
Polygon’s MATIC is currently facing one of its toughest market challenges, with only 2% of holders in profit and whales dominating the supply. The token’s current price range has created a tug-of-war between retail investors and large-scale holders, leading to increased volatility and liquidation pressure. For MATIC investors, the road ahead is uncertain, but long-term developments in the Polygon ecosystem could eventually steer the token back to profitability.
In the meantime, holders should brace for continued price swings and closely monitor market dynamics.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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