FTX shows faith in MATIC; how does this impact the altcoin’s future?

• FTX staked a substantial $9.5 million worth of MATIC tokens, signaling confidence in the token.
• MATIC’s social engagement declined while prices showed a positive trend.

After FTX’s bankruptcy filing, questions loomed over how they would manage their holdings. However, they made a notable move by staking a substantial amount of Polygon[MATIC], which could have several implications.

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A lot at stake here

According to recent data, the address controlled by FTX’s bankruptcy team recently staked approximately $9.5 million worth of MATIC, yielding 4.6%. This proactive step can positively influence MATIC’s state and sentiment around staking, demonstrating FTX’s confidence in the token.

As for the broader MATIC staking landscape, data from staking rewards revealed that the Total Staked Tokens reached an impressive 3.66 billion. This underscored the robust staking ecosystem around MATIC. The widespread participation in staking provided a solid foundation for MATIC’s security and network reliability.

However, there were some concerning signs in the social arena. MATIC’s Social Volume had declined, indicating a potential waning interest in the token. This decline in social activity might raise questions about MATIC’s community engagement and long-term appeal.

Moreover, the Weighted Sentiment for MATIC dipped in the last few days. This could indicate a shift in investor sentiment, potentially toward less optimism regarding MATIC’s future. The decline in sentiment coupled with social volume could affect the popularity of Polygon in the cryptocurrency ecosystem.

Source: Santiment

Daily activity and transactions within the MATIC network had also decreased during this period. A drop in daily activity and transactions might signify reduced network utility or user engagement, which is a cause for concern.

Additionally, MATIC’s revenue and fees faced a significant decline over the past month, falling by 26.6% and 43.6%, respectively. The decrease in fees and revenue can be attributed to reduced network activity and usage. Thus, possibly impacting the sustainability of the MATIC ecosystem.

Source: Artemis

Despite these concerns, there was a ray of hope in the price movement. In the past few days, MATIC’s price demonstrated an upward trend, reaching $0.53 at the time of writing. The increased trading volume and the growth in the number of holders indicated a renewed interest in the token.

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Source: Santiment

The popularity of Polygon’s zkeVM could also help bolster the sentiment around both Polygon and MATIC. According to recent data, TVL on Polygon zkEVM grew by 30% over the last month.