The Polygon Vesting contract is officially vacant. Will this push the price of MATIC to $3?
Like many other cryptocurrency projects, MATIC, the native token of the Polygon network, was launched with a partial supply available to the team over a period of time. In the case of Polygon, the vesting period was 5 years, and token unlocks have been conducted periodically since 2019. But with the last batch having just been released to the team, the often-disturbing unlock for investors is now over. Polygon Last Unlock Goes to Team On Wednesday, February 21st, the Polygon Foundation received the last portion of vested tokens from the vesting contract. A total of 273,304,816 million MATIC tokens worth $260 million were released into the foundation wallet. Related Read: Bitcoin Fisher Conversions Reach Critical Levels Not Seen After 2021, What This Means This unlock marks the last unlock the Foundation will receive, as nearly all available supply of MATIC is currently in circulation. It means there is. The latest unblocking brings the cryptocurrency’s circulating supply to 9,618,318,574 out of a maximum supply of 10,000,000,000. As a result, Polygon’s market capitalization has reached just over $9.14 billion, with a fully diluted value (FDV) of approximately $5 billion. The entire MATIC supply has been unlocked. This means that the tokens will no longer be in circulation. This is a huge milestone for a project whose investors have been waiting years for its vested tokens to finally run out. Polygon Trends Under $1 | Source: MATICUSDT on Tradingview.com How does this affect MATIC price? The fact that the entire MATIC supply is currently in circulation has a positive impact on the digital asset, especially in the long term. Inflation is what drives investors away and prevents them from holding coins for fear that more tokens will be in circulation and supply will exceed demand. Related Read: Financial Expert Drops Gloomy Prediction for US Economy, Says Bitcoin Is a ‘Parachute’ Now that the entire supply is in circulation, MATIC price presents an opportunity for price discovery. However, there are still concerns about when the Polygon Foundation can start selling the coins, as all of the unlocked tokens still sit in the foundation’s wallet. However, if it decides to sell, the Foundation will likely do so through OTC (over-the-counter) trading to minimize the impact of the sale on the token price. As a result, MATIC prices may not fall significantly. At the time of writing, the MATIC token is trading at $0.95, up 1.11% in 24 hours. Although the performance was not encouraging, the token remains 67% below its 2021 all-time high of $2.92. Follow Best Owie on X (formerly Twitter) for market insights, updates and the occasional fun tweet… Featured image from Admiral Markets, chart from TradingView.com
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