Polygon and Solana Rally: Ethereum Whales Buy as DeFi TVL Drops
• Polygon (MATIC) and Solana (SOL) have made significant price gains in the past 24 hours.
• MATIC was the fifth most purchased asset by Ethereum whales in this same period.
• Solana’s TVL has dropped from around $1 billion in November to currently around $215 million.
The cryptocurrency market has started off the new year on a bullish note with several tokens recording price gains. Among them are Ethereum Layer 2 calling solution Polygon (MATIC) and high-performance proof-of-history blockchain Solana (SOL). In the last 24 hours, MATIC has gained 1.59 percent and is currently trading at around $0.78. Data from WhaleStats shows that the token was among the top 10 most purchased assets by Ethereum whales. In particular, MATIC was the fifth most purchased asset by the top 100 largest ETH wallets.
Meanwhile, SOL has seen even more impressive gains of 5.17 percent in the last 24 hours, trading at around $11.81. This puts it up 18.1 percent since 2023 started as it tries to fight back from the FTX-fueled crash. The crash began in November and has seen SOL drop out of the top 10 cryptocurrencies ranked by market cap.
At the same time, the Polygon network has seen significant adoption numbers in the last three months. The total value locked (TVL) on Polygon decentralized finance (DeFi) protocols has remained relatively stable at around $1 billion. This is in stark contrast to competitors like Avalanche and Solana, which have both seen liquidity drop-offs in the same period. In the case of Solana, TVL has dropped from around $1 billion in November to currently around $215 million. This has been accompanied by allegations of whales manipulating the price of the token.
As the cryptocurrency market continues to heat up, it will be interesting to see if Polygon and Solana can maintain their current price gains. With bullish development activities expected in the two ecosystems, it is possible that we could see further price appreciation for the two tokens in 2023.
