Number of wallets staking MATIC increases, but not number of actual users
Polygon Network recently saw a surge in the number of staked and locked in smart contract coins. More than $110 million worth of MATIC were staked by seven addresses at almost the same time yesterday, reports Lookonchain. However, there is a catch.
If we leap deeper into the on-chain data shared, we can clearly see that the seven addresses belong to the same entity, which is either an extremely large retail investor or an institution that operates a respectable amount of MATIC.
A total of ~140M $MATIC ($110.5M) was staked by 7 addresses at the same time yesterday.
These 7 addresses seem to belong to the same whale (institution).
They all get $ETH from the address “0xa863” as a gas fee. pic.twitter.com/RxOK3aeOFY
— Lookonchain (@lookonchain) January 6, 2023
The funds originated from seven wallets from three platforms: Amber, Coinbase, FalconX. The thing that allowed the analyst to determine the potential owner of these wallets is the source of a gas fee. All entities get their Ethereum from the address “0xa863” as a gas fee.
In order to keep the funds more manageable and distributed, the entity most likely decided to create numerous wallets for staking a large amount of tokens. Previously, MATIC was an object of interest to whales and large retail investors. The biggest amount received by the anonymous entity is 57 million MATIC.
MATIC performance on market
Despite the surge in buying power on the market, MATIC is not performing better than the majority of other digital assets. The price of the token returned to the same level we saw three months ago despite the massive price spike in November.
After reaching the $1.2 threshold, an enormous amount of tokens got injected into the market, the price of the token tumbled by over 36% in no time, causing a surge of liquidations and losses.