Over the past seven days, Polygon (MATIC) has recorded significant gains and this is a relief to Polygon traders and investors after a prolonged slump in the crypto market.
At the time of writing, MATIC was trading at $0.5116, up 23.65% in the last 24 hours. It hit a daily high of $0.5145.
Although MATIC is still down 82.67% from its all-time high of $2.92 that it set last year on December 27, its trading volume increased by 114.45% to set at $937.9 million in the past 24 hours.
But why is MATIC outpacing other cryptocurrencies in the bear market? let’s dive into some of the reasons behind the surge in MATIC prices.
Achievement of carbon neutrality
One of the main reasons for the rally is to achieve carbon neutrality after its recent partnership with KlimaDAO, an on-chain carbon market to achieve this. During its announcement yesterday, Polygon said it had received $400,000 in carbon credits, which equals 104,794 tonnes of greenhouse gases.
In an official blog post, the blockchain company said:
“Polygon has taken a major first step towards carbon neutrality with the retirement of $400,000 in carbon credits representing 104,794 tonnes of greenhouse gases, or the network’s entire CO2 debt since its inception.”
Polygon co-founder Sandeep Nailwal also said:
“Achieving carbon neutrality is an important first step, but there is still work to be done. Polygon will lead the way as the entire industry strives to become a net positive for the environment.
Accumulation by whales of MATIC assets
Another reason for the spike in MATIC prices is the increased accumulation of MATIC by whales.
According to a tweet posted today by Santiment, wallets with between 10,000 and 10 million MATIC coins bought more MATIC coins, which has been happening since early May this year.
🦈🐳 $MATIC sharks and whales have been in a fairly large accumulation trend for about six weeks. Holder levels ranging from 10,000 to 10 million coins held have collectively added 8.7% more to their bags over this period. 📈 https://t.co/oasCn72rxt pic.twitter.com/lm4au2fWkn
— Santiment (@santimentfeed) June 22, 2022