The Polygon Vesting Contract Is Officially Empty, Will This Send MATIC Price To $3?
February 22 2024 - 6:00PM
NEWSBTC
Like many other crypto projects, the native token of the Polygon
network, MATIC, was launched with some portion of the supply vested
for the team over a period of time. In the case of Polygon, the
vesting was for five years, and since 2019, there have been
periodic token unlocks. However, the unlocks, which have often been
a deterrent for investors, are now over, as the last batch was just
released to the team. Polygon Last Unlock Goes To Team On
Wednesday, February 21, the Polygon Foundation received the very
last portion of their vested tokens from the vesting contract. In
total, 273,304,816 million MATIC tokens valued at $260 million were
released to the Foundation’s wallet. Related Reading: Bitcoin
Fisher Transform Reaches Critical Level Not Seen Since 2021, What
This Means This unlock marks the very last unlock that the
Foundation will receive, meaning that almost all of the available
supply of MATIC is now in circulation. The latest unclog brings the
circulating supply of the cryptocurrency to 9,618,318,574 out of
its 10,000,000,000 maximum supply. As a result of this, the market
cap of Polygon is sitting just above $9.14 billion with a fully
diluted valuation (FDV) of approximately $5 billion. The entirety
of the MATIC supply has been unlocked, which means that there will
be no more tokens being brought into circulation. This is a huge
milestone for the project, whose investors have waited years for
the vested tokens to finally run out. Polygon trending below $1 |
Source: MATICUSDT on Tradingview.com How Will This Affect The MATIC
Price? The fact that the entirety of the MATIC supply is now in
circulation is bullish for the digital asset, especially in the
long term. Inflation is a factor that tends to drive investors away
and keep them from holding their coins due to the fear of more
tokens coming into circulation, causing supply to exceed demand.
Related Reading: Finance Expert Drops Grim Prediction For US
Economy, Says Bitcoin Is The ‘Parachute’ Now that the entirety of
the supply is now in circulation, it gives the MATIC price a chance
to enter into price discovery. However, there is still some concern
about when the Polygon Foundation might start selling their coins
as the entirety of the unlocked tokens still sit in the
Foundation’s wallet. If they do decide to sell, though, it is
likely that the foundation would do so through OTC
(over-the-counter) deals to minimize the impact of such a sale on
the token price. As a result, the MATIC price might not suffer
much. At the time of writing, the MATIC token is trading at $0.95
with a 24-hour increase of 1.11%. Although its performance has been
far from encouraging, the token is sitting only 67% below its 2021
all-time high of $2.92. Follow Best Owie on X (formerly Twitter)
for market insights, updates, and the occasional funny tweet…
Featured image from Admiral Markets, chart from TradingView.com
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