Polygon’s NFT sales surge to new highs, but stumbling blocks lie ahead

• Polygon NFT sales started to surge. However, activity on the network declined.
• MATIC token under pressure as prices declined due to a lack of interest from new users.

According to data from 21 April, it was observed that Polygon’s [MATIC] NFT sales were rising tremendously. Compared to NFT markets on other cryptocurrencies, Polygon was doing relatively well in terms of sales and came in second only to Ethereum

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The volume of transactions on the Polygon network witnessed a 19.49% growth over the last week, resulting in total sales of $15.13 million.

We've seen Polygon in the #2 spot over a 24 hour period…

Polygon is now #2 in NFT sales volume over the last 7 days. pic.twitter.com/M22jOzXjZX

— Narb (@NarbTrading) April 20, 2023

More than meets the eye

However, despite the increasing interest in Polygon’s NFTs, the overall activity on the Polygon network declined. According to data provided by Artemis, Polygnon’s daily active addresses fell from 435,200 to 294,000 over the last month.

During the same period, the number of transactions made on the Polygon network also decreased from 2.9 million to 2.4 million.

Source: Artemis

The waning interest in Polygon’s dApps could be one of the factors contributing to the decline in its activity. Dapp Radar’s statistics revealed that prominent dApps on the Polygon network, like Planet IX, encountered difficulties in terms of gaining traction.

There was a 31.5% decline in the count of distinct active wallets on the network in the week which ended on 15 April. Moreover, the number of transactions on the protocol also plummeted by 51.96%

Source: Dapp Radar

New developments on Polygon

The initiatives undertaken by the Polygon development team to enhance the protocol may serve as an incentive to attract greater participation from users on the network. Notably, Polygon bridge’s UI underwent several modifications aimed at improving its usability and accessibility.

Such efforts to optimize the platform’s performance and user experience are integral to Polygon’s long-term growth strategy. By implementing changes that foster greater ease of use and accessibility, the network is better positioned to retain its existing user base and potentially attract new users.

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Coming to the token, MATIC’s prices were observed to decline over the last few weeks. Its network growth fell during this period, implying that new addresses weren’t interested in the token. The MVRV ratio continued to stay in the negative territory, indicating that many MATIC addresses weren’t profitable.

If MATIC prices continues to decline, it could suggest that holders decided to sell their assets at a loss.

Source: Santiment