Recent data is showing that the top 100 Polygon holders account for 91.06% of all MATIC tokens. Most of these are network contracts, though a good portion is held by other holders.
The official addresses that belong to the Polygon Network contracts account for the vast majority of the holdings — like the top holder, which is the staking contract that holds roughly 20% of the supply at over two million MATIC tokens.
The second-largest holder is the Polygon vesting contract, which holds 16.6% of the supply, amounting to over 1.6 million MATIC tokens. The number of token holders in total is over 216,000.
The MATIC token has spiked in price considerably since the start of the year, as more investors begin to see the value in its offerings. The project itself has been around for years, but it is only in the past 12 months that it has truly come to the forefront of the market.
Polygon is a full-stack scaling solution for the Ethereum network. It provides secure and reliable solutions for Ethereum-based projects, providing low gas fees and high throughput. The efficacy of its solution has led to multiple projects integrating the solution and a tremendous growth rate for Polygon.
In total, these network contracts account for more than 50% of the supply, leaving the remaining 40% or so in the hands of other holders. Critics will, of course, decry that this is a tad too centralized for their liking. Given the fact that transaction fees have increased, and that a small group of holders controls much of the supply, this criticism could only be stoked further.
Other currencies in the top crypto assets by market cap do not have quite as much a centralized holding of tokens as Polygon. Bitcoin stands at over 14%, both of which show considerably more decentralization. Ethereum’s top 10 holders, however, possess over 20% of the supply.
Polygon growing incredibly fast
Polygon has hit a number of milestones in recent months as these projects begin to integrate it. The number of daily active addresses on Polygon recently topped that of Ethereum’s for the first time in its history. Additionally, the number of unique Polygon addresses also crossed 100 million on Monday.
Such advances in the network’s ecosystem have been on the rise consistently since the start of the year. Nearly all metrics across the board have shown a sharp rise, and there is nothing to suggest that it will change anytime soon.
Of course, growth brings new challenges. Polygon decided to raise its network fees to fight spam transactions, which resulted in transactions dropping by half not long after.
But with a foray into NFTs, and the likes of Ernst and Young integrating Polygon, there is nothing but good omens for the network. It has also received funding from numerous sources, including Mark Cuban, so growth appears to be on the board for the much-vaunted Polygon Network.
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