In the last seven days, Polygon (MATIC) has experienced significant gains and this has come as a relief to traders and investors after a prolonged crypto market slump.
At the time of writing, MATIC was trading at $0.5116, up 23.65% over the past 24 hours. It has reached a daily high of $0.5145.
While MATIC is still 82.67% down from its all-time high of $2.92, set on December 27 last year, its trading volume has increased by 114.45% to $937.9 million in the past 24 hours.
But why is MATIC outperforming other cryptocurrencies in a bearish market? Let us look at some of the reasons behind the MATIC price hike.
carbon neutrality achievement
One of the main reasons for the rally is the achievement of carbon neutrality following the recent partnership with ClimaDao, the on-chain carbon market, to achieve this. During its announcement yesterday, Polygon said it had received $400,000 worth of carbon credits, the equivalent of 104,794 tons of greenhouse gases.
In an official blog post, the blockchain company said:
“Polygon has taken a major first step toward becoming carbon negative with the retirement of $400,000 in carbon credits, which represents 104,794 tons of greenhouse gases, or the entirety of the network’s CO2 debt since inception.”
Polygon co-founder Sandeep Nelwal also said:
“Reaching carbon neutrality is an important first step, but there is more work ahead. Polygon will lead the way as the entire industry moves toward becoming a net positive for the environment.”
Accumulation of Whale’s MATIC Holdings
Another reason for the MATIC price increase is the increase in MATIC accumulation by whales.
According to a tweet posted by Sentiment today, wallets with 10k to 10 million MATIC coins have bought more MATIC coins, this is happening since the beginning of May this year.
I $MATIC Sharks and whales tend to accumulate very large for about six weeks. The tiers of holders of coins ranging from 10k to 10m have collectively added 8.7% more to their bags over this time period. https://t.co/oasCn72rxt pic.twitter.com/lm4au2fWkn
— sentiment (@santimentfeed) 22 June 2022
