Polygon Vesting Ends: What Does it Mean for MATIC Price?

The Polygon network's native token, MATIC, recently reached a significant milestone: the end of its vesting period. This means all MATIC tokens are now in circulation, potentially impacting the token's future price.

Key Points:

Vesting over: The Polygon Foundation received its final batch of vested tokens on February 21st, marking the end of a five-year vesting period.

Increased supply: This adds 273 million MATIC tokens to the circulating supply, bringing it to nearly 9.62 billion.

Inflation reduced: With no further token creation, inflation concerns may ease, potentially benefitting the long-term price.

Price discovery: The static supply allows MATIC to enter a more organic price discovery phase.

Uncertainties remain: The Foundation still holds a large portion of unlocked tokens, raising questions about potential selling pressure.

Price Impact Unclear:

While reduced inflation is bullish, the Foundation's selling behavior remains a key unknown. OTC (over-the-counter) sales could minimize market impact, but selling pressure still exists.

Current Price: As of February 24th, MATIC trades at $0.95, up slightly from the previous day. While far from its 2021 high of $2.92, this news may influence future price movements.

Remember: This information is for educational purposes only and does not constitute financial advice. Conduct your own research and consider your risk tolerance before making investment decisions.