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- MATIC’s supply on exchanges hit a record low of 8.56% on January 10 as the project introduced plans for a new alternative investment infrastructure.
- The new initiative could drive demand for the MATIC token and catalyze a new price rally soon.
Polygon’s native token MATIC is exiting crypto exchanges in large volumes as holders seemingly turn bullish. Recent data shows that MATIC exchange reserves are down from 9.19% of the total supply in December to 8.56% on January 10. This drop coincides with the announcement of Libre, a Polygon CDK-powered institutional Web3 chain for alternative assets. Basically, this new project will empower institutions to create and issue their own on-chain tokenized assets.
The drop in exchange supply suggests that holders are bullish on the future of the digital asset. In reverse, an increase in exchange supply would suggest a bearish outlook with holders depositing in preparation to sell. Taking the coins out of the exchange, suggests they are ready to hold on to them for a long time.
At the time of press, MATIC has witnessed a remarkable rally, surging by more than 10% in the last 24 hours. On the weekly chart, the altcoin is up by nearly 9% and is trading at $0.9344.
With a market cap of nearly $9 billion, MATIC is now the 15th-ranked cryptocurrency by market cap. Interestingly, Lark Davis has recently pointed out that Polygon POS has surpassed Solana in terms of daily active addresses.
Polygon POS has surpassed Solana in terms of daily active addresses.
HUGE! pic.twitter.com/o8s0zvHNtJ
— Lark Davis (@TheCryptoLark) January 9, 2024
This is a bullish sign for the token as shared by Captain Faibik who expects a 600% rally once the price breaks out from its long-term pattern.
Polygon (MATIC) Rallies After Launch of Libre
The uptick in the Ethereum scaling chain’s token comes just hours after the launch of Libre. According to the official blog post sharing the details of the project, this is “a new alternative investments infrastructure designed for asset managers and distributors, is launching a dedicated chain built with Polygon Chain Development Kit (CDK) to enable unparalleled access to global alternative investment funds.”
The institutions have arrived on Polygon CDK. For the first time, a financial institution-focused L2 is being built, settling to Ethereum.
Introducing Libre, institutional web3 infrastructure for the distribution of alternative asset funds, launched by WebN and @LaserDigital_.… pic.twitter.com/Ybs3Ul8Fzv
— Polygon (Labs) (@0xPolygonLabs) January 10, 2024
The post goes on to explain that Libre will empower institutions to create and issue their tokens. This is a growing trend in the world, with tokenization expected to fuel $400 billion in additional annual revenue for the alternatives industry, according to Bain & Co.
The team further confirms that Libre is scheduled to launch in Q1 2024. This makes it a potential rally catalyst for a MATIC rally. Investment management firm Brevan Howard and management firm Hamilton Lane will be the first issuers on Libre. Other regulated institutions are expected to seek the project in the near future. Dr. Avtar Sehra, CEO and founder of Libre discussed plans for 2024, stating;
While our MVP objective is to increase AUM by launching the primary issuance service and driving distributor integrations, we are also working closely with our partners and clients on our 2024 product roadmap, which includes collateralised lending and automated portfolio rebalancing – building the future of wealth APIs.
