By
Chimamanda U. Martha
May 8th, 2024
The final unlock brings the current total circulating supply to 10 billion MATIC.
Polygon’s native token, MATIC, has entered total circulation after a final token unlock of 273 million MATIC worth around US $253M. This final unlock schedule was transferred from the Polygon (MATIC) Vesting Contract to the Polygon Foundation’s address on February 21, as Etherscan shows.
273 million MATIC (valued at approximately US$253 million) were transferred from the Matic vesting contract to the Matic Foundation address today. This is Matic’s last token unlock transfer, and MATIC has since entered full circulation. By @EmberCN https://t.co/PhEPziUEp9
— Wu Blockchain (@WuBlockchain) February 22, 2024
The final unlock brings the current total circulating supply to 10 billion MATIC. Since 2019, Polygon has been unlocking its tokens in a phased approach. The first token unlocks schedule in 2019 saw teams and advisors get 1.2 billion MATIC.
In the subsequent schedules, between 2020 and 2023, 1.2 billion MATIC were unlocked each year for Network Rewards and Ecosystem Growth. The last and final unlock to its Foundation on 21 February meant all minted MATIC are now in circulation. Although this could be deemed a deflationary move and potentially boost MATIC price charts, the token slumped 6% on the final unlock day, falling from $1.0 to $0.90.
Can Polygon (MATIC) Price Breakout Above $1?
A look at the daily charts indicated that the $1 psychological level doubled as a key bearish order block and range-high. MATIC has faced three price rejections at the $1 level since late December 2023.
When zoomed out on the weekly chart, MATIC’s previous weekly candlestick close of $0.9992 was a bullish signal after climbing above the crucial $0.97 resistance level. A price retest above $0.97 on the weekly chart could give bulls more edge for further upside. In such a scenario, MATIC could break out above $1 with possible bullish targets to watch out for in the long term at $1.2, $1.3, and $1.5.
Conversely, an unforeseen bearish pressure could slump the token to the mid-range level of $0.87 or the range-low above $0.70.
However, the bearish scenario seemed more unlikely given the Polygon’s positive network statistics. According to DefiLlama, Polygon’s TVL (total value locked) remained above $800 million in February and climbed to >$900 million around Valentine’s Day. The TVL stood at $965.7 million at press time, up from $963.4M the previous day.
Additionally, Token Terminal data showed that Polygon’s fundamentals were still positive, as trading volumes and daily active addresses increased to $796 million and 861K on 21 February.
As such, the MATIC price correction was likely not linked to its network traction and final token unlock but to Bitcoin’s recent price choppiness around $52k.