Polygon Unlocks 1.4 Billion MATIC from Vesting Contract: Bearish or Bullish?
Recently, the Ethereum L2 scaling platform Polygon unlocked 1.4 billion MATIC tokens, representing 14% of the tokens’ total supply, from its vesting contract. This event has sparked debate in the crypto community: is this a bearish sign, or does it present potential opportunities for Polygon?
According to a tweet from Blockworks researcher, Martin, the Ethereum L2 scaling solution unlocked the sum of 1.4 billion MATIC tokens from its vesting contract. This unlock represents a significant portion of the total MATIC supply.
What Happened?
Over the past few hours, Ethereum L2 scaling platform Polygon unlocked around 14% of MATIC’s total supply from its vesting contract address. In August, 1.4 billion MATIC (14% of the total supply) was moved from a vesting contract to staking or the Polygon treasury.
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 ...
Where are the Tokens Going?
Polygon has given a detailed breakout of where the token will move after being released from the Vesting contracts. Polygon closed the quarter with 9.7 billion.
As per Polygon, it includes two vesting unlocks as per the schedule – October 2025 (320,000,000) and April 2025 (320,000,000). 546mil (5.46% of MATIC supply).
Is This Bearish for MATIC?
The release of such a large quantity of tokens naturally raises concerns about potential selling pressure. A sudden influx of MATIC into the market could dilute its value, potentially leading to a price decrease. Some analysts view such large unlocks as inherently bearish.
Potential Upsides and Bullish Arguments
However, it's important to consider the potential positive aspects. Like many different crypto initiatives, the native token of the Polygon community, MATIC, was launched with some portion of the provision vested for the group over .... The unlocked tokens are intended for staking and treasury purposes, which could strengthen the Polygon ecosystem in the long run.
If the Polygon Foundation uses these tokens strategically for development, partnerships, and community initiatives, it could ultimately benefit MATIC's long-term value.
Conclusion
Whether this unlock is ultimately bearish or bullish for MATIC remains to be seen. The market's reaction will depend on how the Polygon Foundation utilizes these tokens and the overall sentiment surrounding the project. Keep an eye on price action, news, and fundamental developments within the Polygon ecosystem to make informed investment decisions. According to... the same amounted to...