Polygon (MATIC) Market Cap Sank More Than $3 Billion in May

Polygon Co-Founder Addresses Centralization and Exit Scam Concerns

MATIC was part of the digital assets that saw more than $3 billion wiped off their market value due to the plunge in the prices of cryptocurrencies during May’s market crash.

MATIC, the native asset of the Polygon ecosystem remains a top 20 digital asset by market capitalization in June 2022. According to Be[In]Crypto Research, MATIC closed the fifth month of the year with a market capitalization of approximately $5.28 billion.

This was a 39% drop from its market cap on the opening day of the month. On May 1, MATIC saw a trading volume of $764.72 million which corresponded to a market capitalization of around $8.64 billion.

MATIC Historical Data by CoinMarketCap

Why the sinking market capitalization? 

An overall bearish market which was deepened by consistent increase in interest rates to spike demand in government bills/bonds, a slumping stock market, geopolitical events, and interest in less volatile assets can be credited for the falling market capitalization of MATIC. 

The number of large transactions involving MATIC reached a peak of 273,000 at a price of $0.669950 on May 13.

MATIC Number of Large Transactions Chart by the Into the Block

This corresponded with a large transaction volume which was in the region of 524.26 million MATIC at the same price.

MATIC Transactions Volume in MATIC Chart by Into the Block

The large transaction volume of 524.26 million multiplied by a price of $0.66950 equals $350.99 million.

MATIC Large Transactions Volume in USD Chart by Into the Block

On May 13, MATIC opened at $0.6009, reached an intraday high of $0.7471, tested an intraday low of $0.5937, and closed the day at $0.6675. 

Trading volume was around $920.97 million and corresponded to a market capitalization of $5.31 billion. 

This was a 38% drop from the coin’s opening day market value. 

MATIC price reaction 

MATIC opened on May 1, at $1.04, reached a monthly high of $1.19 on May 5, tested a monthly low of $0.5084, and ended the month at a trading price of $0.6621. Overall, this equates to a 36% decrease in the opening and closing prices of MATIC in May.

MATIC/USD Chart by TradingView

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