Will Polygon’s NFT growth spur MATIC?
- Though sales volume increased, Polygon’s NFT trade count declined.
- MATIC was down by 3% in the last 24 hours, and metrics were bearish.
Over the last week, Polygon [MATIC] witnessed a double digit rise in its key NFT metrics. A recent tweet from Polygon Daily revealed the main collections that contributed to this growth. However, Polygon’s NFT growth did not seem to impact MATIC, as its price declined by over 3% in the last 24 hours. What’s causing MATIC to rise?
Read Polygon’s [MATIC] Price Prediction 2023-24
An assessment of Polygon NFTs’ state
CRYPTOSLAM’s data revealed that several key metrics, such as Polygon NFT’s total number of sellers and buyers, grew by 20% in the last seven days. While the total number of NFT transactions went up by over 25%, its total sales volume exceeded 35%, directly suggesting an increase in NFT activity.
Polygon Daily, a popular Twitter handle that posts updates related to the Polygon ecosystem, pointed out in a recent tweet the top Polygon NFT collections on OpenSea, which is one of the largest NFT marketplaces.
As per the tweet, y00ts grabbed the first spot on the list over the last week. The Sandbox and Ring Runnerz completed the top three of the same list.
— Polygon Daily ? (@PolygonDaily) July 6, 2023
However, if other metrics are to be considered, the situation looks drastically different. For instance, Santiment’s chart revealed that over the last seven days, Polygon’s NFT trade counts have plummeted. Moreover, its NFT trade volume in USD also declined.
Moreover, Dune’s data suggested that the blockchain NFT’s weekly volume per marketplace had also declined since the beginning of this month.
MATIC’s state is dire
Polygon’s native token, MATIC, registered a decline in price. As per CoinMarketCap, MATIC’s price sank by 3,4% in the last 24 hours. At the time of writing, MATIC was trading at $0.6677 with a market capitalization of over $6.2 billion, making it the 12th largest crypto.
A reason behind this decline could be an increase in selling pressure.
A look at CryptoQuant’s data revealed that MATIC’s net deposits on exchanges were high compared to the last seven days, which proved that investors were selling. The token’s network growth and MVRV Ratio also went down over the last week, which might also have played a role.
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Are bulls taking a back seat?
MATIC’s Bollinger Band pointed out that the token’s price was in a lower volatility zone, decreasing the chances of a sudden uptrend. Though the bulls were still leading, the MACD displayed the possibility of a bearish crossover.
Its Money Flow Index (MFI) also went down sharply, further increasing the chances of a continued uptrend.