Decoding the state of Polygon NFTs as MATIC…
- Polygon’s NFT sales volume increased by 50% while trade counts decreased.
- MATIC’s on-chain performance concerned, but Polygon’s revenue registered an increase.
Polygon’s [MATIC] NFT ecosystem has been witnessing growth over the past month, reflecting its increased usage across the globe. CRYPTOSLAM’s data revealed that Polygon’s NFT sales volume increased by over 50% in the last 30 days.
Read Polygon’s [MATIC] Price Prediction 2023-24
Decoding Polygon’s NFT ecosystem
Magic Eden, which is a leading NFT marketplace, recently revealed the top 10 performing collections on Polygon. As per the tweet, the top three positions were held by Collab, Trum Digital Trading Cards, and Lens Protocol.
Top 10 Performing @0xPolygon collections on @MagicEden 👏
Absolutely crushed the week, who’s next 👀 pic.twitter.com/MLrTtn295w
— Magic Eden on EVM (@MEonEVM) February 27, 2023
Though all these updates looked to be in absolute favor of Polygon, Santiment’s chart told a different story. As per the data, despite a considerable hike in sales volume, Polygon’s total NFT trade count and trade volume in USD declined over the past 30 days, which was a point of concern for the ecosystem.
However, Polygon recently formed a partnership, which can help change the charts in the coming days. As per the official tweet, Lotte Group has partnered with Polygon Labs to expand its presence in the rapidly growing NFT industry with their marketing and NFT project hub, Daehong Communications.
Polygon also announced that Coin Flip NFT on the network went live recently with 250 NFT, granting access to exclusive mints. The first phase of this was a success, as it sold out. Therefore, the launch of the second phase looked promising.
https://twitter.com/0x_PolygonNFT/status/1630096117391302656?s=20
MATIC in a critical state?
While this development can help Polygon’s NFT ecosystem, the days ahead for MATIC might concern many. According to CoinMarketCap, MATIC’s price registered a decline of over 3.5% and 16% over the last 24 hours and last week, respectively, which troubled the investors. At the time of writing, MATIC was trading at $1.23, with a market capitalization of more than $10.7 billion.
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Likewise, CryptoQuant’s data revealed that MATIC’s net deposits on exchanges were high compared to the seven-day average. This was a development in the bears’ favor, as it indicated high selling pressure. Active addresses also registered a decline, suggesting a lower number of users on the network.
Thanks to the recent downtrend, MATIC’s MVRV Ratio registered a decline, which raised concerns as well. MATIC’s network growth also went down after spiking on 25 February. However, as per Token Terminal, these did not affect the network’s overall revenue, which increased considerably over the last 30 days.
