Can Polygon [MATIC] reclaim the $1 mark this week
One of the major participants of the crypto industry on the investment and DeFi front, Polygon has been observing phenomenal growth over the past couple of weeks.
This growth is not on the path of further extension as the changing dynamics of the network will bear an impact on the altcoin.
On 2 August, the co-founder of Polygon, Sandeep Nailwal, tweeted the confirmation of the unlocks of 1.4 billion MATIC tokens worth over $1.26 billion.
These tokens, which represent about 14% of the entire supply of MATIC, were released from the vesting contract.
Of this 1.4 billion MATIC, 640 million MATIC were claimed by the co-founders, which they have committed to staking into the network. The unlocks, which took place last August and this April, were the last of the planned unlocks for the team.
Another 546 million MATIC tokens were also unlocked, but these tokens will be held by the Polygon Foundation and will be joined by another 273 million MATIC tokens, which are set to unlock in October 2022.
The interesting aspect about this is that these unlocks won’t really affect the price action in any way since these tokens have not hit the market. Once that happens, things could swing in either direction.
However, this does imbue some sense of confidence in the investors regarding the network and the development team. On that very front, Polygon is doing exceptionally well, having also introduced the first DeFi marketplace for uncollateralized institutional lending through Clearpool Finance.
This would come in handy in supporting the recovery marked by the altcoin over a month and a half, where MATIC shot up by more than 164.16%. Trading at $0.94, MATIC is close to recovering May’s losses, and in doing so, it would also be able to reclaim $1 as support.
The Chaikin Money Flow does show some outflows over the last few days. But on the macro scale, investors have been active. And, their inflows have made the rise organic.
Consequently, this has borne a positive impact on the market value of the asset, which has been maintaining its position in the positive zone for more than three weeks now.