The host of the popular crypto YouTube channel Coin Bureau, alias Guy, shares his views on altcoin project Polygon (MATIC).
“Most of the selling pressure comes from the Polygon Foundation”
In a new video, the analyst says that the circulating supply of MATIC is putting quite significant selling pressure on the altcoin on a scale that could prevent any rally in the near future. The analyst says:
Historical data from CoinMarketCap shows that the circulating supply of MATIC has increased by nearly 600 million in the last four months. Historical data from CoinGecko shows that the circulating supply of MATIC has not changed at all. However, this is highly unlikely given MATIC’s vesting program.
The analyst states that in fact the vesting contract for the Polygon Foundation issued 600 million MATICs during the same period. According to the analyst, the MATIC balances of other vesting contracts have changed very little or even remained the same, indicating that most of the selling pressure is coming from the Polygon Foundation. Guy thinks that MATIC’s acquisitions and the heavy spending of the development team to finance the business could affect the price of the crypto asset. The analyst explains his views as follows:
The speculation that Polygon Foundation is selling has made the price of MATIC headlines recently, and if you do the math it makes sense. Last August, the Polygon Foundation allocated $1 billion worth of MATIC from its treasury to fund the development of zero-knowledge technologies. The Polygon Foundation also paid MATIC 250 million to acquire Hermes Network.
“Sell pressure presents a dire picture for altcoin price potential”
Polygon’s acquisition of Mir Protocol cost MATIC 250 million, as we mentioned in the news of Kriptokoin.com. In addition, the analyst says that even Polygon’s $450 million raise is actually an over-the-counter MATIC sale to various crypto VCs. Analyst notes:
I couldn’t find any specific references to this $450 million vesting plan at MATIC, so I have to assume they’re unlocked.
Guys stresses that selling pressure paints a ‘dire picture’ for MATIC’s price potential in the near future, and any rally will depend heavily on demand and future developments in the Polygon network. In addition, the analyst shares the following information:
Demand for MATIC is on the decline. As you can see, the number of new wallet addresses on Polygon’s PoS Blockchain seems to be fixed. Worse still, the number of daily transactions on Polygon’s PoS Blockchain has been on the decline for months as aggregate value is locked in DeFi protocols.
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