Binance vs SEC: Assessing the impact on MATIC

• MATIC’s exchange netflow revealed that it was not under selling pressure.
• Polygon zkEVM’s daily transactions recently reached a new all-time high. 

Binance’s US arm witnessed the largest withdrawal in 2023 when several tokens worth millions were removed from the exchange recently. Polygon [MATIC] topped the list as MATIC tokens worth around $64 million flowed out.

Read Polygon’s [MATIC] Price Prediction 2023-24

The top withdrawing addresses seem to be fleeing to other CEXs like Binance International, WOO Network and Coinbase. Apart from MATIC, Bitcoin [BTC] and Ethereum [ETH] were also among the cryptos that were withdrawn. However, the aftermath of this episode might not be what you think. 

Binance US had the largest outflow in a year of $184M on 7 Jun after receiving the TRO from the SEC

Top assets being withdrawn:
1. $MATIC $64M
2. $BTC $48M
3. $ETH $20M
4. $USDT $17M
5. $BNB $5.8M
6. $AVAX $4.3M

More interesting findings below 📊@DuneAnalytics pic.twitter.com/OaU0sY2Bta

— Tom Wan (@tomwanhh) June 13, 2023

What caused this outflow?

The primary reason behind this outflow was the US SEC vs. Binance episode, which created havoc among investors.

To clear the air, the financial watchdog accused Binance and its founder, Changpeng Zhao, of operating a “web of deception.” Binance and Zhao were also charged with 13 offenses nearly a week ago by the regulator. 

However, things didn’t take much time to cool down for MATIC.  The two addresses that withdrew MATIC, deposited back $60 million in MATIC couple days later. It was also interesting to see that MATIC’s price showed signs of recovery in the bearish market condition.

According to CoinMarketCap, MATIC’s price increased by nearly 2% in the last 24 hours. At the time of writing, it was trading at $0.6511 with a market capitalization of over $6 billion, making it the 11th largest crypto.

A possible reason for the uptick could also be the announcement of Polygon 2.0. The announcement might have created hype, which affects investor sentiment positively. 

MATIC’s buying pressure rises

A look at MATIC’s metrics suggested that the price hike might continue. As per CryptoQuant, MATIC’s net deposits on exchanges were low compared to the last seven days, which is a bullish signal.

Moreover, MATIC’s supply on exchanges declined sharply while its supply outside of exchanges increased. This generally means that investors are accumulating, increasing the chances of a continued uptrend. However, positive sentiment around Polygon plummeted drastically over the last week. 

Source: Santiment

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Polygon zkEVM reaches new heights 

Polygon zkEVM also reached a remarkable milestone lately. As per Artemis’ data, zkEVM’s daily transactions reached a new all-time high. A similar increasing trend was also noted on its daily active addresses’ chart, which looked quite encouraging. Additionally, zkEVM’s TVL has also been on the rise for several weeks. 

Source: Artemis