Polygon (MATIC), a leading solution for scaling the Ethereum blockchain, has experienced a significant surge in large transaction volume, often associated with activity by high-value investors known as whales. This upswing coincides with the recent launch of Ethereum ETFs in the United States, a landmark event for the cryptocurrency industry.
Data from IntoTheBlock reveals a staggering 745.3% increase in Polygon’s large transaction volume over the past 24 hours, reaching $152.75 million. This rise in whale activity seems to be directly linked to the excitement surrounding the debut of Ethereum ETFs.
On Tuesday, the United States witnessed the long-awaited launch of exchange-traded funds (ETFs) directly tied to Ethereum, the second-largest cryptocurrency by market capitalization. This development allows traditional investors a familiar and regulated way to gain exposure to Ethereum, potentially attracting significant capital inflows.
The first day of trading for these Ethereum ETFs proved highly successful, garnering a net inflow of $107 million. Among these funds, BlackRock Inc.’s iShares Ethereum Trust emerged as the leader, attracting a net inflow of $267 million, followed by Bitwise’s Ethereum Trust at $204 million and the Fidelity Ethereum Fund at $71 million.
The positive sentiment surrounding Ethereum appears to be spilling over to Polygon, a network that complements the Ethereum blockchain by addressing its scalability limitations. This sentiment is further supported by Santiment, an on-chain analytics firm that has observed a significant shift in whale behavior since July 17th, coinciding with the Ethereum ETF launch.
The data indicates a 64% increase in the number of Ethereum transactions exceeding $100,000 compared to Bitcoin transactions during this period. This figure jumps to a staggering 126% when compared to Tether (USDT) transactions on the Ethereum network.
These trends suggest that whales are not only accumulating Ethereum but also positioning themselves within the broader Ethereum ecosystem, potentially viewing Polygon as a beneficiary of Ethereum’s growth. Whether this surge in whale activity translates to sustained price appreciation for MATIC remains to be seen. However, it undeniably highlights the growing investor interest in the Ethereum scaling solution and the potential impact of the recent Ethereum ETF launch on the cryptocurrency market.