Polygon Completes Token Unlock Process: What It Means for Investors
If youโre a crypto enthusiast following the Polygon network, thereโs some exciting news for you. The last batch of vested tokens has been released to the Polygon Foundation, marking the end of the token unlock process. This means that almost all of the available supply of MATIC, the native token of Polygon, is now in circulation. Letโs break down what this means for investors:
The Last Unlock and Circulating Supply
On February 21, the Polygon Foundation received the final portion of their vested tokens from the vesting contract. A total of 273,304,816 million MATIC tokens, worth $260 million, were released to the Foundationโs wallet. With this unlock, the circulating supply of MATIC now stands at 9,618,318,574 out of a maximum supply of 10,000,000,000.
Milestone Achievement for Polygon
This milestone achievement means that no more tokens will be brought into circulation. For investors who have been waiting patiently for the vested tokens to run out, this is great news. It eliminates the fear of an oversupply of tokens and potential price depreciation.
Concerns about Future Sales
While the entire supply is now in circulation, there are still concerns about when the Polygon Foundation might start selling their coins. Currently, all unlocked tokens are held in the Foundationโs wallet. If they decide to sell, it is likely that they will do so through over-the-counter (OTC) deals to minimize any negative impact on token prices.
Price Outlook for MATIC
With the token unlock process complete, the MATIC price has the opportunity to enter into price discovery. 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 less than stellar, it is still only 67% below its 2021 all-time high of $2.92.
Hot Take: Whatโs Next for Polygon?
Now that almost all of the MATIC supply is in circulation, itโs an exciting time for Polygon and its investors. With the token unlock process behind them, Polygon can focus on further development and adoption of its network. Keep an eye on how the Polygon Foundation handles their unlocked tokens and any potential impact on prices. As always, make informed decisions and stay updated with the latest news in the crypto world!
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