Polygon (MATIC) Market Cap Sank More Than $3 Billion in May

MATIC was part of the digital assets that saw more than $3 billion wiped off their market value due to the plunge in the prices of cryptocurrencies during May’s market crash.

MATIC, the native asset of the Polygon ecosystem remains a top 20 digital asset by market capitalization in June 2022. According to Be[In]Crypto Research, MATIC closed the fifth month of the year with a market capitalization of approximately $5.28 billion.

This was a 39% drop from its market cap on the opening day of the month. On May 1, MATIC saw a trading volume of $764.72 million which corresponded to a market capitalization of around $8.64 billion.

Why the sinking market capitalization? 

An overall bearish market which was deepened by consistent increase in interest rates to spike demand in government bills/bonds, a slumping stock market, geopolitical events, and interest in less volatile assets can be credited for the falling market capitalization of MATIC. 

The number of large transactions involving MATIC reached a peak of 273,000 at a price of $0.669950 on May 13.

This corresponded with a large transaction volume which was in the region of 524.26 million MATIC at the same price.

The large transaction volume of 524.26 million multiplied by a price of $0.66950 equals $350.99 million.

On May 13, MATIC opened at $0.6009, reached an intraday high of $0.7471, tested an intraday low of $0.5937, and closed the day at $0.6675. 

Trading volume was around $920.97 million and corresponded to a market capitalization of $5.31 billion. 

This was a 38% drop from the coin’s opening day market value. 

MATIC price reaction 

MATIC opened on May 1, at $1.04, reached a monthly high of $1.19 on May 5, tested a monthly low of $0.5084, and ended the month at a trading price of $0.6621. Overall, this equates to a 36% decrease in the opening and closing prices of MATIC in May.

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