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1.4 Billion MATIC Tokens Issued in Just 1 Hour, Price Reacted with 6% Fall

Tue, 08/02/2022 - 12:33
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Gamza Khanzadaev
1.4 billion MATIC is 14% of total supply
1.4 Billion MATIC Tokens Issued in Just 1 Hour, Price Reacted with 6% Fall
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As part of Polygon's plan, 1.4 billion MATIC tokens were unlocked from the vesting contract this morning. This volume is equivalent to 14% of the total token supply, or 10 billion MATIC. Meanwhile, if CoinMarketCap data is to be believed, the total circulating supply of the token equals 8.035 billion MATIC.

As Polygon co-founder Sandeep Nailwal explains, the unlocking was planned and affected MATIC tokens that were blocked a year ago. Interestingly, despite the end of the vesting period in April of this year, the tokens have only been claimed now.

The 1.4 billion unlocked MATICs are divided into three groups, of which:

  • 640 million MATICs belong to the project team
  • 546.6 million MATICs go to the project team
  • 200 million MATIC are distributed as a reward for staking

Nailwal also said to expect a big announcement from the Polygon team about MATIC vesting in the following days.

MATIC price review

The crypto market certainly reacted to such a large-scale emergence of new MATIC tokens from the vesting. The token momentarily fell by 6% but managed to recover its quotes in a couple of hours and win back half of the fall.

Source: TradingView

At the moment, MATIC's price is hovering around the mark of $0.9 per token. After MATIC plummeted from its all-time high of $2.92 by over 90% to the $0.3 level, it began to rise steadily, fueled by good news. As a result, since mid-May, the token has shown an increase of more than 190%.

MATIC is now approaching the important $1 dollar resistance level, but it is worth waiting for further clarification from Polygon regarding unlocking tokens before gaining MATIC positions.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.