Polygon completes unlocking the final 273 million tokens and prepares for Polygon 2.0
Polygon, an Ethereum scaling solution, has completed the final authorization of its native token, MATIC, and released its entire supply to the market. The move marks a major milestone for the network as it transitions to Polygon 2.0, a new version of its ecosystem and token.
According to Etherscan, Polygon's vesting contract transferred 273 million MATIC (worth approximately $253 million) to the Matic Foundation on the evening of February 21, 2024. This was the final vesting event and the entire MATIC supply is now available. is in full circulation, EmberCN reports.
MATIC's total supply is 10 billion tokens and its market capitalization currently stands at around $8.6 billion. MATIC is one of the top 15 coins by market capitalization, according to Token Unlocks.
Source: Token Unlocks
In July 2023, Polygon announced proposed changes to MATIC's tokenomics, as part of the Polygon 2.0 upgrade. According to the proposal, MATIC will be renamed POL and become the common currency of the entire Polygon blockchain ecosystem. The token conversion roadmap from MATIC to POL is expected to last for 4 years.
MATIC's price increased slightly to 1 USD before the unlock, but then dropped to 0.94 USD after the official announcement, a loss of 6% in 24 hours.
MATIC price action and expert opinion
MATIC price faces strong rejection at $1 and above. It has been unable to overcome this resistance zone since April 2023 after facing strong selling pressure.
According to analyst Ali Martinez, Polygon shows encouraging indicators from a long-term perspective. The current pattern suggests a multi-year symmetrical triangle formation. A sustained close above $0.96 could indicate the start of a rally, potentially targeting $1.73.
Despite being one of the most popular Ethereum Layer 2 scaling platforms, Polygon's MATIC underperformed peers or Layer 2 tokens. Over the past year, the cryptocurrency has experienced a decline around 32%, showing significantly worse performance than competing layer 2 tokens such as OP and SKL, which increased by 216%, 46% and 50% respectively.
Even Arbitrum's ARB, a token with a shorter lifespan of less than a year, achieved significantly more gains than MATIC in the six-month timeframe.
However, some market analysts believe that after a long period of underperformance, Polygon's price is preparing to recover. In his update, crypto analyst NFT cryptomaniac noted:
“There's nothing new here! I will let you know if anything changes, otherwise just close your eyes and wait for $1.8-1.9-2 depending on FOMO.”
Source: X
