As awful as the bear market is, traders have often said that it comes with a benefit, that crypto millionaires are made when they "buy down."
A polygonal whale became the last millionaire of digital assets after he made an astounding profit on a three-year investment. In 2020, a cryptocurrency merchant acquired 4 million binary matic valued at about $84,000, a little more than 2 cents per coin at the time.
According to Etherscan, two days ago, the portfolio sold its material assets for an astonishing $5.2 million in cash, resulting in a significant gain. While the $5.2 million included the initial investment of MATIC's $4 million and subsequent purchases from MATIC, the initial investment had a 50-fold return on the purchase price.
At the time of the sale, MATIC was estimated at $1.14, for an initial investment of $4.5 million. Despite an enormous gain, many users wonder what the gain at the highest asset level would have looked like. MATIC reached a historic high of $2.92 in December 2021 and is still 60% below its peak.
In December 2021, when MATI traded for $2.92, the whale reportedly earned $11.7 million through the sale. The sale occurred when the digital asset market realized exceptional gains in the first month of 2023, having spent a long time in the woods.
Polygon marches on
Polygon is among the biggest gainers in the year’s first month after recording huge wins in recent weeks. Assets have increased 19% over the last 7 days, resulting in a 50% increase in performance this year. Polygon remains in the top 10 list of cryptocurrencies per market cap with a value of 9.5 billion dollars.
The recent price action comes following widespread anticipation for the mainnet release of Polygon’s zkEVM upgrade, which was first announced last year. Upgrade is a scaling solution that would allow for more timely verification of major transactions. According to Mihailo Bjelic the co-founder of Polygon, the upgrade “could put Ethereum on par with Visa in terms of transaction processing speed.”