Will this be the End for Matic or Just the Norm with Cryptocurrencies?
One of the first project's released on Binance's launchpad, Matic has been interesting to watch. The altcoin aims to be a level 2 scaling solution which supports smart contracts. Matic can be seen as a competitor to Ethereum of sorts, with some parallels between the projects.
Earlier this week the altcoin managed to break its all-time-high of 0.041 per token. This has been a much higher rate than it's previous all-time-high of 0.029 shortly after launch.
Matic started to noticeably start increasing in price since the 25th of December, until just a few hours ago. In this time frame, Matic managed to increase its value roughly threefold, but these gains were wiped out in less than an hour.
So far, the altcoin has managed to retrace it's drop by a bit. The dip stands currently at around 50% and could retrace further.
One of the most likely culprits responsible for Matic's sharp devaluation in such a quick time frame could be whales. Seeing that there were no recent alerts of large Matic transfers, it could have been a Binance user who accumulated a lot of Matic, only to unload it in one swift motion.
As with Chainlink which faced accusations of a team sell-off, that could also be a possibility with Matic.
While things do not look too bright for the altcoin currently, Matic's devaluation could be a good entry point in the long term.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado