MATIC traders could stay worried as Polygon’s NFT space celebrates this…

• Polygon’s number of NFT buyers and sellers increased by double digits last month 
• MATIC’s metrics looked bearish, suggesting a further decline in the token’s price

Polygon [MATIC] witnessed a surge in the number of NFT buyers, thanks to multiple popular NFT collections migrating to the blockchain. CRYPTOSLAM’s data revealed that the number of Polygon NFT buyers increased by more than 27% in the last 30 days. Additionally, the number of NFT sellers also registered an uptick last month. 

Source: CRYPTOSLAM

Read Polygon’s [MATIC] Price Prediction 2023-24

A closer look at Polygon’s NFT ecosystem 

As per DappRadar, y00ts, which recently migrated from Solana [SOL], was at the top of the list of the top NFT collections on Polygon in the last 30 days. Apart from y00ts, Collect Trump Cards and Lens Protocol also made it to the top three on the same list.

However, despite the increase in the number of buyers, it was surprising to see a decline in the total number of NFT trade counts. As per Santiment, the chart plummeted considerably. Additionally, MATIC’s NFT trade volume also followed trade counts and declined sharply last month. 

Source: Santiment

A change in Polygon’s fate? 

Though the aforementioned metrics looked concerning, Polygon recently made a new announcement that can help turn the situation around in the blockchain’s favor. 

Accelerating NFT community ecosystem growth ??@NFTInspect, a leader & innovator in SocialFi & Web3 social analytics, is integrating w/ Polygon??Bringing Polygon-based NFTs to Inspect's platform will increase interoperability & accessibility for users. ??‍??https://t.co/o3tjFZxBVb pic.twitter.com/wSZPpkrAPS

— Polygon (Labs) (@0xPolygonLabs) May 9, 2023

Inspect, a leader and innovator in SocialFi and Web3 social analytics announced its integration with Polygon.

With this new integration, Inspect’s research and development will propel the advancement of the NFT and Web3 markets by investigating new use cases and technologies.

Not only does this announcement look encouraging for the blockchain’s NFT space, but it also seemed to have impacted investor sentiment positively, as evident from the rise in weighted sentiment. 

Source: Santiment

MATIC is still under pressure

MATIC however, continued to face the bears’ wrath as its price kept sinking. According to CoinMarketCap, MATIC’s price had declined by more than 13% in the last seven days. At the time of writing, it was trading at $0.8588 with a market capitalization of over $7 billion.

Source: CoinMarkletCap

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If metrics are to be believed, things were not looking good for MATIC either. CryptoQuant’s data revealed that MATIC’s net deposits on exchanges were higher compared to the last seven days. This was a bearish signal, as it suggested increased selling pressure.

MATIC’s active addresses also declined in the last 24 hours, indicating less activity on the network. The token’s demand in the futures market declined last week as its Binance funding rate turned red.

However, a few of the metrics told a different story. For example, MATIC’s supply on exchanges registered a decline. This was accompanied by a rise in its supply outside of exchanges. This was a typical bull sign, as it meant that the investors were accumulating the token.

Source: Santiment