Matic Token (Ethereum)

MATIC

MATIC is the native currency of the Polygon chain used for gas fees and security.

Risk Rating
Best
$0.70
2.32%
Summary
What we like
MATIC is the native blockchain token used to pay for transaction fees on the Polygon network. A portion of fees from network operations are burned to reduce the supply and increase MATIC scarcity for token holders.
What we like less
There are centralization concerns as the Polygon network consists of only 100 validators.
What it means for you
MATIC has quickly risen to a top alternative Layer-1 token with intrinsic value given its utility to pay for transaction fees, solid network usage, and deflationary mechanisms.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $6.5B
  • Fully Diluted Valluation: $7B
  • FDV / MC: 1.1
  • Ranking inside Exponential (excluding stables): #8
  • Circulating Supply: 9,282,943,566
  • Total Supply: 10,000,000,000
  • Total Supply: 10,000,000,000
  • Volume (24H): $210M
  • ATH: $2.92 (12/27/2021)
  • ATL: $0.00 (05/10/2019)
Risk Assessment
Best
Asset Strength

MATIC is a mid-cap asset that represents the protocol`s native governance or utility token.

Asset Tokenomics

MATIC has a fixed supply.

Asset Volatility

MATIC is highly correlated to the overall market.

Dependencies

Matic Token (Ethereum) has no dependencies.

Things to know about MATIC

What is MATIC used for?

The MATIC token has two main use cases: to pay for gas fees on the network and for staking to secure the blockchain. The Polygon network requires a small amount of MATIC to execute transactions on the blockchain. Validators on the network are required to stake MATIC to process network activity in return for staking rewards and transaction fees (paid in MATIC).

MATIC tokenomics

The total supply of MATIC is capped at 10B tokens. The initial exchange offering was conducted on Binance with around 19% of the total supply sold. Subsequently, Polygon conducted two private funding rounds that collectively sold 3.8% of the token's supply. The remaining token supply is distributed between the team (16%), advisors (4%), network operations (12%), foundation (~22%), and ecosystem (~23%).

How does MATIC accrue value?

A portion of fees paid to execute transactions on the Polygon network are burned, reducing the supply, and increasing the MATIC token's scarcity. If network demand is strong enough and the number of MATIC burned exceeds the amount minted via staking rewards, then the asset can become deflationary. Polygon implemented a similar update to Ethereum's EIP-1559 in which all base fees are burned. This deflationary effect will mostly be offset in the beginning by inflationary token emissions to reward validators.

MATIC Pools
Idle MATIC Perpetual Yield Tranches (Senior)
3.4%
Yield
$93K
TVL
Risk
A
Protocol
Idle
Chain
Ethereum
Idle MATIC Perpetual Yield Tranches (Junior)
7.6%
Yield
$20K
TVL
Risk
B
Protocol
Idle
Chain
Ethereum