Polygon has been one of the most popular projects in the Ethereum ecosystem, but now thigs are looking rough for the project.

Polygon (MATIC), the Ethereum (ETH) scaling solution taking the crypto world by storm, has suddenly hit a rough patch.

After soaring to a 90-day high of $1.56 on Feb. 18, the native token MATIC has taken a 13.5% nosedive, sitting at $1.35 as of Feb. 22.

To make matters worse, the company announced on Feb. 21 a 20% layoff of its workforce. As per the statement, the company’s reserves stand at more than $250 million and about $1.9 billion in BTC, indicating a sound treasury.

What does this mean for Polygon and its native token MATIC?

We’ve got the lowdown on Polygon’s market action and on-chain metrics, so you can make sense of this rollercoaster ride and assess what’s next for this game-changing project.

What’s happening with Polygon?

Despite the cryptocurrency industry’s rough ride in 2022, Polygon Labs secured a massive $450 million in its first major financing round led by Tiger Global and SoftBank in 2022.

Fast forward to the last quarter of 2022, and Polygon experienced a surge in user activity, recording an impressive 262.47 million completed transactions, according to Messari. However, the collapse of FTX caused the platform’s revenue to take a hit. 

Despite this setback, data from DeFi Llama shows that the total-value-locked (TVL) on Polygon has risen since Jan. 1, increasing by nearly 18% to reach $1.17 billion as of Feb. 22.

Meanwhile, Polygon’s saga continues to unfold as it prepares to launch the zkEVM mainnet beta on Mar. 27, which is expected to increase network throughput and reduce gas prices significantly. 

With these developments, it’s worth exploring how they have affected the on-chain metrics of Polygon.

Polygon on-chain analysis

Number of addresses

According to Santiment, the number of addresses holding 10,000-100,000 MATIC has increased by 39%, from 364 to 507, since November 2022. 

Meanwhile, the number of addresses holding 100,000-1,000,000 MATIC has seen a whopping 60% increase, from 3760 to 6020.

In short, the increasing number of whale addresses holding MATIC indicates that the token is gaining traction in the crypto world. As more investors jump on board, the demand for the token increases, resulting in a surge in price.

Stock-to-flow (S2F) ratio

For those unfamiliar with the term, stock to flow (S2F) ratio is a measure used to evaluate the scarcity of an asset. 

It is calculated by dividing the total supply of a given asset by the amount produced or “flow” each year. The higher the ratio, the scarcer the asset, and the more likely it is to appreciate.

MATIC’s S2F ratio, which stands at 30.47 as of Feb. 22, has risen since the start of 2023. This is due to several factors, including the growing popularity of the Polygon Network, the increasing number of decentralized applications (dapps) being built on the platform, and the expansion of its ecosystem.

So, what does this mean for the future of MATIC? As history indicates, a rising stock-to-flow ratio is typically a bullish sign of an asset’s price. As the token becomes scarcer, it becomes more valuable, and investors are willing to pay a premium.

Suppose MATIC continues to experience strong demand and the S2F ratio rises. In that case, the platform could become an even more attractive choice for investors—a trend that could lead to additional gains.

Mean coin age

Mean coin age is a key metric in the crypto world that reflects how much investors are hodling. A higher mean coin age means more people are holding onto their coins, reducing the supply and driving up demand, ultimately raising the price.

As per Santiment data, MATIC’s mean coin age has been on the rise for 90, 180, and 365-day time frames since November 2022. 

With the current market volatility, a rising mean age could suggest that MATIC holders are confident in the project’s fundamentals and prospects and are not swayed by short-term price fluctuations. 

In other words, the increasing coin age of MATIC is a promising signal of the community’s trust in the project’s growth and long-term sustainability.

MATIC price prediction

According to the popular pseudonymous cryptocurrency analyst Pentoshi, MATIC could be on the verge of making a new all-time high ahead of the upcoming ZkEVM upgrade.

He reckons that MATIC’s strength during the bear market was commendable. Furthermore, the launch of the upcoming zkEVM mainnet is a major catalyst for a bullish MATIC run.

Meanwhile, CoinCodex, a crypto data website, has strongly recommended MATIC in their choice of best coins for February. They have even predicted that MATIC’s price can spike more than 50% from its current levels and reach $2.06 by Mar. 20.

In line with CoinCodex, Digital Coin, an algorithmic forecasting website, has predicted that MATIC will continue to surge. It predicts that the average price will reach $2.9 this year.

Remember that price predictions are based on the current market and technical sentiments, which may change overnight. Hence, exercising caution when investing in crypto assets is always in your best interest. Never invest more than you can afford to lose.

The road ahead

Polygon has emerged as a standout project in the rapidly-evolving world of cryptocurrencies thanks to its impressive network growth and partnerships with major brands. 

As we look into 2023, Polygon could become one of the top gainers. However, investors should always exercise caution, as the crypto market is notoriously volatile. 

While MATIC’s price may see sharp fluctuations in the short term, the project’s long-term potential looks stable. 

All in all, Polygon is a fascinating project that promises to deliver many exciting developments in the coming years. As a market watcher and observer, you should closely monitor its progress.

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A new blockchain in town is making waves – Conflux (CFX). This layer-one blockchain has been climbing the ranks and has quickly become one of the year’s biggest gainers. 

With a price spike of over 1000% since Jan. 26, Conflux has skyrocketed from $0.03162 to a 52-week high of $0.3595 as of Feb. 21. Amid a high intraday retracement the CFX token has declined to $0.3082 as of this writing.

But what exactly is Conflux, and how did it pull off such an impressive feat? 

In this article, we’ll delve into everything you need to know about Conflux, from its background to its unique features and the factors driving its massive price surge. So let’s get into it.

What is Conflux

Conflux (CFX) is a Chinese blockchain platform that aims to tackle major challenges facing the blockchain industry, such as scalability, security, and interoperability. 

The platform’s unique approach to consensus, utilizing a tree-like structure, enables high throughput and fast transaction confirmation, processing up to 3,000 transactions per second, a significant feat in the market.

Conflux’s founders developed the platform based on academic research at Shanghai Jiao Tong University, where they identified an opportunity to address scalability issues. 

The Conflux team comprises experts in blockchain technology, cryptography, and distributed systems. It is attracting developers and investors, with an increasing number of decentralized applications (dapps) being developed on top of it.

An interesting feature of Conflux is its partnership with the Shanghai government, which strongly supports blockchain technology’s potential to drive innovation and economic growth. This partnership provides a conducive environment for Conflux to thrive and establishes its credibility in the blockchain.

Why did Conflux pump

Conflux has been on a roll with back-to-back announcements that have sent its token price soaring. 

The integration of Little Red Book, the Chinese equivalent of Instagram, led to a 60.25% surge in Conflux’s value on Jan. 26. This move allowed Little Red Book’s 200 million users to display non-fungible tokens (NFT) on their profiles, minted on Conflux. 

As if that wasn’t enough, Conflux continued its winning streak with another groundbreaking announcement on Feb. 15. 

The network revealed its plans to partner with China’s Telecom to develop blockchain-based SIM cards (BSIM cards) to store and manage users’ public and private keys in encrypted storage. 

The news triggered a massive rally, with CFX token prices skyrocketing by almost 100%, and the rally showing no signs of slowing down.

Conflux price forecast

Hong Kong is taking a giant leap towards cryptocurrency adoption as it moves to legalize crypto transactions for all its residents from June 1, 2023. 

The decision is expected to drive demand for Chinese coins, which could result in a favorable impact on the price of CFX soon.

Crypto Twitter experts have also taken note of China’s central bank’s massive liquidity injections, which seem to coincide with a surge in the crypto market’s capitalization. 

However, it’s essential to remember that crypto markets are notoriously volatile, so it’s crucial to invest wisely and never invest more money than you can afford to lose. 

While Chinese coins may continue to rise in the short term, it’s best to exercise caution and research before making any investment decisions.

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The market value of BinaryX (BNX) has experienced a significant increase, surging over 200% within the past month.

CoinMarketCap’s recent price data reveals a rising trend in BNX’s value, starting from $58 on Jan. 7 and reaching its 52-week peak of $181.35 on Feb. 13.

Despite a slight pullback, the current price of BNX is $168.32 as of Feb. 17, accompanied by a market cap of $486 million.

What’s causing this pump, and what exactly is BinaryX? We’ll analyze all you need to know about this token, and you can decide whether to invest.

What is BinaryX

BinaryX is a GameFi platform that operates two play-to-earn games, CyberDragon and CyberChess, both of which run on the BNB chain.

As per data from DappRadar, BNX ranks as the 13th largest decentralized app (dapp) on the BNB chain, with over $1 billion locked in smart contracts as of Feb. 17. This marks a 30% increase in one month.

The BinaryX platform initially served as a decentralized derivative trading protocol, but the system has since evolved to accommodate the advancements in the GameFi sector.

BNX functions as the platform token of BinaryX and serves as a utility token for all activities in the BinaryX ecosystem, including games and the incubation fund.

Why is BNX rising

In their year-end report, BinaryX reported a significant increase in user growth, going from 98,000 to 130,000 players. This was met with positive market sentiment, as their BNX token continued to thrive with the growing number of users.

However, the excitement didn’t stop there. BinaryX announced plans to expand its range of games and split its BNX token in a dramatic 1:100 ratio on February 9, 2023. The token split will begin today i.e., Feb. 17, BinaryX confirmed in a tweet:

This decision was made through a democratic DAO vote, with an overwhelming 99.5% of voters supporting the move, suggesting a solid belief in BinaryX’s future, with investors eagerly anticipating the platform’s growth.

As soon as the announcement was made, the market responded enthusiastically. Investors rushed to buy BNX, causing the token’s price and volume to skyrocket, reaching its 52-week high.

BNX price prediction

CoinCodex estimates that the value of BNX could surge to $373 by Mar. 15, a whopping 113% increase from current prices.

Long-term projections from DigitalCoinPrice also suggest an average price of $329.65 in 2023 and $399.70 in 2024.

But don’t get too carried away just yet. As with all cryptocurrencies, the market is highly volatile, and predictions don’t always match reality.

What’s next for BNX

The hype surrounding BinaryX is real, but so is the risk. Its recent price action has turned heads, but investors must remember that volatility can mean high risk.

While the gaming coins resurgence has added to BinaryX’s buzz, factors like economic trends and regulation changes can impact its price in the coming days. So, caution is key.

So, if you’re considering joining the BinaryX bandwagon, research, seek expert advice, and prepare for the market’s ups and downs.

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While crypto has sometimes been seen as a renegade movement, the recent influx of institutional investment has turned the tables on that view.

In the wild world of crypto, fortunes are made overnight, memes are worth millions, and Elon Musk tweets can make or break your portfolio.

But amidst all this chaos, two things stand out: the breakneck pace of change and the growing influence of institutional investors.

Now, Wall Street suits are rubbing shoulders with crypto cowboys, and the game has changed forever. But what does this mean for the scrappy startups that helped build the crypto world?

Buckle up as we dive deeply into the world of institutional crypto investment. From hedge funds to billionaires, we’ll see who’s running the show: retail investors, venture capitalists, or institutional giants.

We will also explore how institutional adoption is changing privacy, security, and decentralized governance and how the rise of web3 protocols is shaking up centralized platforms. Let’s find out.

The rise of institutional investors in crypto space

Firstly, let’s define what we mean by institutional investors. Institutional investors, also known as “whales” in the crypto world, are entities like hedge funds, pension funds, and banks with huge pockets of cash to invest.

You may be wondering why all these fancy institutions are jumping into the crypto game. Well, it’s all about the bling.

Institutions are always on the lookout for opportunities to make a pretty penny. And with the insane volatility in the crypto market, some serious cash must be made. It’s like a never-ending rollercoaster ride – but instead of getting sick, you’re getting rich.

But let’s not forget about the elephant in the room – security.

Crypto may be digital, but that doesn’t mean it’s not valuable. Institutions need to know that their investments are safe and sound. And with the development of custodial solutions, they can rest easy knowing their money isn’t going anywhere.

Plus, with more and more countries and regulators giving the green light to digital assets, institutions are feeling more confident about diving in. They don’t want to miss out on the action and potential returns, and who can blame them?

As more and more investors pile into the crypto market, institutions can’t afford to sit on the sidelines. They want a piece of the pie too, and they want to ensure they get it before it’s all gone.

In the end, the rise of institutional crypto investment is a testament to the power of money. As long as there’s money to be made, institutions will find a way to get in on the action.

Changing dynamics of the market

With their deep pockets and vast resources, institutions can cause some major shifts in the market dynamics. Here’s the rundown of how institutional investment affects the crypto market and what changes we’ve seen as a consequence:

Quick facts

• Grayscale Investments saw its assets under management (AUM) skyrocket from roughly $2 billion to over $43 billion in December 2021, thanks to its cryptocurrency investment trusts.

• BlackRock, managing $8.6 trillion in assets, partnered with Coinbase in August 2022, allowing clients of BlackRock’s Aladdin investment management platform to trade digital assets, starting with bitcoin.

• Despite market turbulence, a November 2022 Institutional Investor Custom Research Lab survey revealed that 58% of investors with current stakes in digital assets planned to increase their holdings over the next three years.

• In 2022, Fidelity’s survey of over 1,000 institutional investors showed that 51% had a favorable view of digital assets, compared to 45% in 2021.

Changing dynamics

Increased liquidity

Institutional investors can add a lot of liquidity to the market with their deep pockets and sophisticated trading strategies. That means more money flowing around, which can help reduce transaction costs and make it easier for everyone to buy and sell assets.

As a result, more investors can buy and sell digital assets with greater ease and efficiency, leading to improved price discovery.

Reduced volatility 

Speaking of prices, institutional investment has also significantly affected volatility. Contrary to popular belief, institutional investment has contributed to a decrease in price swings.

In fact, the above chart has shown that bitcoin’s volatility has been on a steady decline since 2018, and the influx of institutional investors is a key factor in this trend.

This means digital assets are becoming more stable, reliable, and predictable – characteristics that make them more attractive to mainstream investors.

Market cap augmentation

Big money means big growth in the crypto market! From 2018 to November 2021, it was institutional investment that pushed BTC and ETH to their record-breaking highs. No secret there, but definitely a trend to watch!

Mainstream adoption

With the support of institutional investors, digital assets are becoming more widely accepted and recognized as legitimate investment vehicles. 

This is evidenced by the increasing number of publicly-traded companies adding cryptocurrencies to their balance sheets.

In 2022 alone, several hundred large companies added bitcoin to their treasuries, including big names like Tesla, MicroStrategy, Square, and now even countries like El Salvador.

Influence of different players in the crypto space

Let’s take a closer look at how different players impact the world of crypto.

Retail investors

First up, we have retail investors. These are the everyday people like you and me who are getting in on the crypto action. They may not have the same level of expertise or resources, but they make up for it in sheer numbers.

Retail investors bring liquidity to the market, like pouring gasoline on a fire – it can either burn out of control or create a beautiful blaze. The jury’s still out on which one it’ll be.

Venture capitalists

Next, we have venture capitalists. These are the big dogs of the investment world, seeking out the next big thing and pouring truckloads of money into it.

Think of venture capitalists as the cool kid in high school who always had the latest and greatest gadgets. They have the funds to take risks and the connections to make things happen.

The downside? They can be a bit like a rollercoaster – up one minute, down the next. 

Institutional investors

Last but not least, we have institutional investors. They’re the steady and reliable force that keeps the market stable. They have the expertise and resources to make smart investments and weather volatility.

However, they can also be slow to move and risk-averse. It’s like driving a tank – slow, steady, and hard to steer, but it gets the job done.

The cumulative effect

So, what’s the impact of these different types of investors on the crypto market? 

It’s like a game of Jenga – each piece is important and has the potential to make the whole thing come crashing down. 

Retail investors bring liquidity and democratization but also greater risk.

Venture capitalists bring excitement and innovation but also greater volatility. Institutional investors bring stability and credibility but also greater caution.

It’s a delicate balance and one that’s constantly shifting.

Which institutions are topping the charts?

Grayscale Investments

Grayscale is a digital asset management firm that offers investment products that give exposure to cryptocurrencies such as bitcoin, ethereum, and more.

According to CoinGlass, its flagship product is the Grayscale Bitcoin Trust holds over 600,000 BTC, currently worth $13.69 billion.

Grayscale has been instrumental in bringing bitcoin into the mainstream, as its products are available to institutional investors, including pension funds, endowments, and family offices.

MicroStrategy

MicroStrategy is a software company that has become one of the biggest bitcoin holders in the world. The company has 132,500 bitcoins worth over $2.89 billion, making it one of the most significant corporate bitcoin investors.

Its CEO, Michael Saylor, is a vocal advocate for bitcoin and has been using MicroStrategy’s cash reserves to purchase bitcoin, seeing it as a hedge against inflation. 

Tesla

In early 2021, Tesla announced that it had purchased $1.5 billion worth of bitcoin, making it one of the most prominent corporate bitcoin investors.

The company has since sold a portion of its holdings, but the move helped to bring bitcoin into the mainstream and fueled a surge in its price. 

Square

Square is a payments company founded by Twitter CEO Jack Dorsey. The company has over 8000 bitcoins worth more than $175 million.

Dorsey has been a vocal supporter of cryptocurrency. It has also developed a product called Cash App, which allows users to buy and sell bitcoin.

The app has become very popular, with over 40 million active users, and has helped to increase bitcoin’s adoption among retail investors.

Fidelity Investments

Fidelity is a financial services company that has been involved in cryptocurrency for several years. It launched Fidelity Digital Assets, a subsidiary that offers custody and trade execution services for cryptocurrencies.

Fidelity has also invested in a range of crypto-related companies and is seen as a leader in the institutional adoption of cryptocurrencies. Its involvement in the space has helped to increase bitcoin’s credibility and adoption among traditional investors.

What are the risks?

As institutional investments pour into the crypto space, it’s important to consider the potential risks and challenges that come along with this influx of capital.

Unexpected price swings: When institutional investors flex their financial muscles in the crypto market, it can lead to price swings so sudden they’ll make your head spin. Brace yourself because these big players can make moves that send shockwaves through the entire market.

Centralization: The flood of institutional money into the crypto scene could leave a select few holding all the cards, undermining the decentralization that crypto stands for. In short, we could be looking at a new kind of power grab.

Regulatory scrutiny: As big players start playing in the crypto sandbox, you can bet your bottom dollar that regulators will keep a watchful eye. This increased scrutiny could mean more hoops to jump through and stricter rules, which could drive up compliance costs for everyone.

Lack of transparency: When institutions enter the game, transparency often takes a back seat. Unlike retail investors who wear their hearts on their sleeves, institutions can keep their cards close to their chest, making it tough for others to make informed decisions.

Manipulation: With great power comes great responsibility – but that doesn’t mean everyone plays by the rules. Institutional investors have the power to manipulate markets and engage in sketchy schemes that can leave smaller investors reeling. Keep your eyes peeled for any shady business.

The road ahead

Institutional investment is bringing a blaze to the world of web3 and crypto. Not long ago, crypto was seen as fringe or even suspect. But now, with big names like Goldman Sachs, Morgan Stanley, and Fidelity getting involved, web3 and crypto are becoming more mainstream and accepted.

Of course, there are risks involved. Institutional investors can be fickle, and it could seriously impact the market if they decide to pull out. And there are concerns that their involvement could lead to a loss of decentralization and control over these technologies.

For the moment, institutional investment is playing a key role in shaping the future of web3 and crypto.

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