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MATIC Staking Data Analysis
Polygon PoS has made major strides throughout the past year and shipped multiple network upgrades. Ranging from the Polygon Mainnet hardfork to rolling out an objective standard for validators, a number of new features have been shipped despite the challenging market conditions.
MATIC stakers have also been active, as staked MATIC tokens have increased from 2.62 B to 3.56 B MATIC over the last year, growing 36.6% year-on-year, averaging 78.3 M tokens per month.
The impressive growth is coupled with a ~ 420% increase in the total staking wallets. Notably, we observed a sharp increase in the number of staking wallets right around the FTX/Alameda implosion, suggesting that users moved their assets on-chain and staked through non-custodial staking providers.
In mid-November 2022, a notable staking inflow preceded a local peak in the price of MATIC. In addition, two sizable staking inflows at the beginning of January signaled a local bottom before the MATIC price surged to $1.50. Suggesting whales knew something was coming that would push the price of MATIC up.
Two significant staking outflows in November and December were followed by a subsequent drop in the price of MATIC, indicating that the entities behind the outflows may have sold off their staked tokens into the market. As a result, MATIC stakers could deduce that future large staking outflows could signal short term downward price pressure.
Nominal reward rates for MATIC stakers have been trending down since October 2022, indicating that investors were accumulating and staking their MATIC over this period.
During Q1 2023, there has been renewed positive market sentiment, resulting in the price of MATIC rallying from the lows. The price action has led to a rise in the number of unstaked tokens and a subsequent decrease in the staking ratio. Consequently, investors still staking their MATIC are now earning higher yields than when MATIC was at $0.80.
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