Polygon unlock sends MATIC worth $263M into circulation

Journalist

Posted: February 23, 2024

• 273 million MATIC has been released into circulation.
• MATIC’s price has recovered by almost 2%.

Polygon [MATIC] has recently achieved a significant milestone with its unlocking process, and this could mark the beginning of a new phase in its price trend.

Polygon sees the last unlock

Etherscan’s data showed that more than 273 million MATIC tokens were transferred from the Polygon vesting contract to the Foundation.

The value of the transferred MATIC amounted to about $263 million at the time of this writing.

A notable aspect of this recent transfer is that it signifies the final token unlock, indicating that MATIC has now entered full circulation.

Polygon volume drops

According to CoinMarketCap, the circulating supply of Polygon was 9.6 billion at the time of this writing, while the total and maximum supply stood at 10 billion. The trading volume had decreased by over 17%.

Santiment’s volume trend analysis further revealed that the volume had surged to nearly $760 million on the 21st of February. However, at the time of this writing, the volume had decreased to around $669 million.

Source: Santiment

This suggested that there had been no immediate market reaction to the latest MATIC unlock. It also implied that the token had not fully entered into circulation by the time of this analysis.

MATC begins recovery

AMBCrypto’s look at Polygon’s daily timeframe chart showed that the newly unlocked token entered a market in decline.

As of the close of trading on the 21st of February, MATIC experienced an almost 7% drop, lowering its price from the $1 range to around $0.9.

However, at the time of this writing, the token had seen a slight recovery, trading with an almost 2% gain and reaching around $0.96.

Source: Trading View

Before the decline on the 21st of February, MATIC’s Relative Strength Index (RSI) was oversold. However, the subsequent price drop brought its RSI to 60.

As of press time, the RSI had moved back above 60. Thus, despite the significant price decline, MATIC remained in a bull trend and continued to exhibit strength in that direction.

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Furthermore, AMBCrypto’s examination of the Polygon Open Interest on Coinglass revealed a surge in funds inflow, reaching one of its highest volumes.

The data showed an inflow of about $402 million, marking the most substantial influx in months. However, at the time of this writing, it has slightly decreased to around $333 million.