Polygon (MATIC) is up 8.5% on the day amid positive on-chain growth, reduced selling pressure, and improved regulatory outlook.
MATIC plummeted at the start of June after the U.S. Securities and Exchange Commission (SEC) regarded it as a security in the case filing against Coinbase and Binance.
The token’s price plummeted 35.5% from $0.90 on Jun 3 to lows of 0.59 within two weeks following SEC’s case.
Nevertheless, the blockchain’s on-chain data shows that selling has slowed alongside an uptick in activity.
The appointment of their legal head Marc Boiron as CEO appears to have acted as a positive catalyst for the price, bogged down by regulatory concerns.
Moreover, the token faced downward selling pressure of 90 million MATIC tokens worth $66.6 million held by bankrupt lending firm Celsius.
On July 5, the firm received the court’s approval to sell its tokens for more liquid Bitcoin (BTC) and Ethereum (ETH) as the bankruptcy proceedings continued.
Nansen data shows that the company has unloaded over 99% of its MATIC holdings, easing the selling pressure on MATIC.
The Celsius address last held MATIC worth less than $50,000.
Polygon’s on-chain growth
On-chain analytics firm Santiment also reported a rebound in growth on Polygon.
The tweet pointed to favorable MATIC token flows as its supply of exchanges reduced, suggesting that more investors moved MATIC to self-custody than to sell on exchanges.
Nansen data shows that despite SEC’s charges, Polygon’s NFT trading volumes in the last 30 days were 11% higher than the previous month, too.
The number of NFTs traded and minted on the network has even re-established pre-SEC lawsuit levels from May.
The market’s sentiments have improved after the announcement of Polygon 2.0 at the end of June.
It involves a series of upgrades to transform Polygon into a network of ZK-powered layer-2 network, unified via a novel cross-chain coordination protocol.
According to the Polygon 2.0 roadmap, the team is expected to announce the new tokenomics model this week.
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