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Seven New Stakers Occurred on MATIC Network, but There Is Catch: It's All Owned by One Entity

Fri, 01/06/2023 - 10:26
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Arman Shirinyan
Number of wallets staking MATIC increases, but not number of actual users
Seven New Stakers Occurred on MATIC Network, but There Is Catch: It's All Owned by One Entity
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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.

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.

Polygon (MATIC) Fights for Relevance Amid Growing L2 Competition

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.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.