The wealthiest Ethereum (ETH) whales are actively nabbing more Polygon (MATIC) as the crypto market pulls back following a drop in the number one cryptocurrency, Bitcoin.
Polygon, which was originally a contender to Ethereum, is still up more than 14,740 percent year to date despite the cryptocurrency market’s small dip.
Two of the biggest Ethereum whales from the “top 1,000 League” each purchased 1 million Polygon (MATIC) tokens a day ago according to data recently released by WhaleStats.
Crypto whale “Saitama” ranked 263 has purchased 999,999 MATIC tokens worth $2,519,997, according to data given by the website that follows the portfolios and crypto transactions of the top 1,000 Ethereum holders.
The other purchase was made by an “unknown” wallet that has ERC-20 tokens worth $35,221,310 on its balance sheet. The whale spent $2,570,000 to purchase 1,000,000 MATIC.
The tracking website revealed that Ethereum Whales had accumulated more MATIC tokens only two days after the Polygon network’s “burn” declaration.
On December 14, Polygon launched the testnet version of Ethereum Improvement Proposal 1559, and whales purchased approximately five million MATIC tokens in four distinct transactions totaling approximately $14 million.
Polygon’s native token, MATIC, rose to new heights in 2021 after two years of minimal growth with the price hovering under $0.02.
The integration of Uniswap’s v3 on the MATIC blockchain, which garnered enormous support and has built a bullish narrative for the cryptocurrency, is one of the primary drivers for the recent price surge.
The Ethereum blockchain faces a number of issues, one of which is scalability. The gas fees rise exponentially as the network is used by more and more decentralised apps and services, and transactions expand rapidly.
Polygon is a Layer-2 blockchain protocol that incorporates scaling solutions to help the Ethereum blockchain gain widespread acceptance by making transactions cheaper, faster, and more secure.
As it has been in the past, MATIC (the Polygon network’s native token) is likely to be the main benefactor of the Ethereum scaling (this time with ZK-rollups) narrative.