Polygon Unlocks 273 Million MATIC Worth Nearly $263M Amid Market Resilience

Key Takeaways:

• Polygon Completes Token Unlock: Over 273 million MATIC, valued at $263 million, have been released into circulation, marking the completion of Polygon’s unlocking process.
• No Immediate Market Impact: Despite the significant token unlock, there was no immediate market reaction, as indicated by Santiment’s volume trend analysis, suggesting that the MATIC token may not have fully entered into circulation during the analysis.
• Market Resilience and Recovery: Following a 7% drop in MATIC price on February 21, the crypto has exhibited resilience and a slight recovery, posting an almost 2% gain and reaching approximately $0.96 at the time of reporting.
• Bullish Trend and Strength: MATIC’s Relative Strength Index (RSI) rebounded from oversold conditions, reaching 60 after the price drop, signaling a continued bullish trend and underlying strength in MATIC’s market position.
• Increased Financial Activity: Analysis of Polygon Open Interest on Coinglass reveals a significant surge in funds inflow, reaching around $402 million, marking one of the most substantial influxes in months. This suggests growing investor interest and heightened financial activity within the Polygon ecosystem.

Polygon (MATIC) has embarked on a new trajectory as it completes its unlocking process, injecting over 273 million MATIC tokens, valued at a substantial $263 million, into circulation. This milestone signifies the conclusion of the token unlocking phase, marking a pivotal moment for Polygon’s market dynamics.

Read More: Polygon Price Prediction

Etherscan’s data illustrates the transfer of 273 million MATIC tokens from the Polygon vesting contract to the Foundation. The sheer value of this transaction, clocking in at $263 million, underscores the significance of Polygon’s journey into full circulation.

Source: Etherscan.io

Examining CoinMarketCap’s data at the time of this development reveals Polygon’s circulating supply standing at 9.6 billion, with a total and maximum supply of 10 billion. However, it’s noteworthy that the trading volume witnessed a dip of over 17%.

Santiment’s volume trend analysis points out a surge to nearly $760 million on February 21, but a subsequent decrease to approximately $669 million at the time of this analysis. This hints at a lack of immediate market response to the recent MATIC unlock, indicating that the token might not have fully entered circulation during this evaluation.

MATIC/USD | Source: TradingView

A closer look at Polygon’s daily timeframe unveils a slightly declining market as the newly unlocked MATIC token enters the scene. On February 21st, MATIC experienced a 7% drop, slipping from the $1 range to approximately $0.9. However, a glimmer of recovery appears, with the token posting an almost 2% gain, settling around $0.96.

Despite the dip on February 21st, MATIC’s Relative Strength Index (RSI) rebounded from oversold conditions, reaching 60 after the subsequent price drop. As of the latest data, the RSI has moved back above 60, signaling that MATIC remains bullish, showcasing resilience amidst market fluctuations.

A closer look at Polygon Open Interest on Coinglass underscores a significant uptick in funds inflow, surging to about $402 million, marking one of the most substantial recent influxes. Although this has slightly receded to around $333 million at the time of reporting, it hints at growing investor interest and financial activity within the Polygon ecosystem.

As Polygon completes its unlocking journey, the crypto market watches closely, anticipating how this injection of MATIC into circulation will impact its price trajectory and overall market dynamics.

Source: AMBCrypto