The profitability of Polygon (MATIC) has taken a significant hit, with just 2% of its holders currently seeing positive returns, as per data from IntoTheBlock. This marks the lowest percentage on record, indicating that a majority of investors are facing losses until market conditions improve.
The price of MATIC fluctuating between $0.36 and $0.40 has left many holders in a challenging position. Approximately 7 billion tokens are held by 8.83K addresses, shedding light on the struggle faced by most holders.
Source: IntoTheBlock
Impact of Whale Dominance
The dominance of whales in holding MATIC tokens is a significant factor influencing market dynamics. The ownership structure of Polygon shows that major market players control 74.79% of the total token supply.
Typically, such concentrated whale ownership leads to drastic price fluctuations, creating a volatile and unpredictable market environment for smaller retail investors.
This dominance by whales indicates the potential for short-term market volatility, given their ability to sway prices with large trades.
For retail traders, this high concentration raises concerns about liquidity and the likelihood of sudden and extreme price shifts.
Source: IntoTheBlock
Similarly, analysis of the Coinglass liquidation map data reveals a surge in liquidations for MATIC within the price range of $0.37-$0.40. This suggests that the price may consolidate in this range before witnessing a significant movement.
Source: Coinglass
Future Prospects for MATIC Holders
With only 2% of holders currently in profit and whales exerting control over the market, the outlook for MATIC remains challenging.
The significant concentration of whale holdings could result in substantial price swings if the token continues to oscillate within the $0.36 to $0.40 range.
Retail investors are likely to face difficulties navigating these turbulent waters as MATIC contends with market pressures.