A significant deposit transaction for Polygon (MATIC), an Ethereum scaling solution provider, has been detected. On-chain data provider Spot On Chain reported that Hermez Network, a ZK-Rollup based scaling platform acquired by Polygon in August 2021 for $250 million, deposited $3.81 million worth of MATIC to the cryptocurrency exchange SwissBorg. This occurred during a period when there was increasing backlash regarding the transparency of token allocations by the Polygon Foundation, the entity behind Polygon.
Noteworthy MATIC Transaction by Hermez Network
Spot On Chain reported that Hermez Network, a ZK-Rollup based scaling platform, deposited approximately 4.5 million MATIC worth $3.81 million to the cryptocurrency exchange SwissBorg about 3 hours ago.
The transfer of 4.5 million MATIC from Hermez Network’s assets to a cryptocurrency exchange coincided with a period of heightened community backlash over the transparency of token allocations by the Polygon Foundation, the entity behind Polygon.
It is worth recalling that Hermez Network was acquired by Polygon in 2021 for $250 million. Hermez Network is an open-source ZK-Rollup based scaling platform and has at least $34 million worth of 39.92 million MATIC under its control. All of these MATIC assets are currently staked.
Current Status of Polygon’s MATIC
MATIC, the native asset of the Ethereum scaling platform Polygon, is trading at $0.8532, down 1% in the last 24 hours, at the time this article was prepared. MATIC currently has a market value of $8.15 billion, making it the 15th largest cryptocurrency.
Data shows that the altcoin’s price has increased by 5.20% in the last 7 days and by 2.28% in the last 30 days. With current prices, MATIC is trading 77.98% below its all-time high (ATH) of $2.72 reached on December 27, 2021. Market observers and analysts expect Polygon, a competent scaling provider, to make a strong showing in the next bull run, although the altcoin has not yet delivered as expected.
